Sweet, Inc. produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $240 and the fixed cost per month is $56,620. For November, the company expects to sell 127 pairs of speakers.

(a)

Your answer is correct. Calculate expected profit.

Expected profit$

39,900

(b)

Calculate the contribution margin ratio, Break-even sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio and intermediate calculations to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Contribution margin ratio

Break-even sales$

Expected sales$

Margin of safety$