Question
The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit$45 Variable cost per unit27 Fixed costs per year237,000 a.
The following information relates to the only product sold by Mastrolia Manufacturing.
Sales price per unit$45
Variable cost per unit27
Fixed costs per year237,000
a.Compute the contribution margin ratio and the dollar sales volume required to break even.
b.Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).
a. Contribution margain ratio ___________%
Break even sales dollar ____________
b. Margin of safety (in dollar) ____________
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
