Testbank Exercise 2 The New Age Pet Store sells Diva Doggie pet waste disposal systems for $45 each. The systems include the unit and a one-year supply of enzyme digester waste terminator. The cost of the unit and enzyme is $32.40. The only other costs are fixed costs of $1,890. During the current period, New Age sold 560 of the units through the stores new on-line catalog division. Don't show me this message again for the assignment Ok Cancel

(a)

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What is the contribution margin per unit? (Round answer to 2 decimal places, e.g. 1.64.)

Contribution margin

$

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(b)

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What is the contribution margin ratio?

Contribution margin ratio

%

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(c)

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What is the breakeven point in units? In dollars?

Breakeven point in units		units
Breakeven point in dollars	$

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(d) What is the margin of safety in units? In dollars?

Margin of safety in units		units
Margin of safety in dollars	$

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