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Sales (10,000 units) $ 240,000 variable costs 102,000 fixed costs 75,000 Required ( 3 points each) a. Contribution margin per unit is $ _______ _

Sales (10,000 units) $ 240,000

variable costs 102,000

fixed costs 75,000

Required ( 3 points each)

a. Contribution margin per unit is $ ________ per unit

b. If sales are doubled total variable costs will equal $ ________

c. If sales are doubled total fixed costs will equal $ ________

d. If 25 more units are sold, profits will increase by $ ________

e. Compute how many units must be sold to break even. ________units

f. Compute how many units must be sold to achieve

operating income of $75,000.________units

g. Compute the revenue needed to achieve an after tax

income of $40,000 given a tax rate of 40%. $ ________

h.Compute margin of safety$-------------

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