Sales	$150,000
Direct materials used	37,000
Direct labour	15,000
Variable manufacturing overhead	15,000
Fixed manufacturing overhead	17,000
Variable selling and administratve expenses	?
Fixed selling and administrative expenses	?
Contribution margin	65,000
Operating income	38,000

1 & 2. What were the fixed and variable selling and administrative expenses for July? Complete the contribution margin income statement to solve for these amounts.

	In Dollars
Sales
Variable Expenses:

Fixed Expenses:
Operating income

3. What was the cost of goods sold during July under absorbtion costing?

Cost of Goods Sold
Total Cost of Goods Sold

4a. Assume that the fixed selling and administrative expenses for July amounted to

$ 10 comma 625$10,625.

What was the break-even point in units for July?

First enter the formula, then compute the break-even point in units.

	/		=	Break-even units
	/		=

4b. Assume that the fixed selling and administrative expenses for July amounted to

$ 10 comma 625$10,625.

How many units must be sold to earn a target operating income of

$ 16 comma 575$16,575?

First enter the formula, then compute the target number of units.

(		+		) /		=	Target # of units
(		+		) /		=

4c. Assume that the fixed selling and administrative expenses for July amounted to

$ 10 comma 625$10,625.

What would the selling price per unit have to be if the company wanted to earn an operating income of

$ 43 comma 575$43,575

on the sale of

890890

units?

Begin by identifying the general formula to be used as a starting point to solve for the sales price per unit. (SP = Sales price and VC = variable cost.)

(

x

)-

=

Target operating income

Now compute the selling price per unit. (Round your answer to two decimal places.)

The selling price per unit have to be $