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The following information relates to the operations of JB Margaritaville Productions, Inc. during the current year: Raw materials used to produce 10,000units$20,000 Direct labor wages

The following information relates to the operations of JB Margaritaville Productions, Inc. during the current year:

Raw materials used to produce 10,000units$20,000

Direct labor wages to produce 10,000 units60,000

Salessalaries50,000*

Rent on production facilities30,000*

*Fixed Cost

Units produced for the year10,000

Units sold for the year9,000

Selling price perunit$20.00

Based on the information above, determine the following:

  1. Sales Revenue
  2. Cost of goods sold
  3. Net income
  4. Contribution margin
  5. Break-even point:
  6. In Units
  7. In Dollars
  8. Break-even point if desired target profit is $75,000
  9. In Units
  10. In Dollars

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