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The following information was obtained from the accounting records of Ehrlich Manufacturing Company. During this period, the company sold 200,000 units. Sales = $9,000,000 Variable
The following information was obtained from the accounting records of Ehrlich Manufacturing Company. During this period, the company sold 200,000 units. Sales = $9,000,000 Variable expenses = $2,250,000 Fixed costs = $5,500,000 1. Calculate the sales price per unit 2. Calculate the variable cost per unit 3. Calculate the contribution margin per unit 4. Calculate the contribution margin ratio 5. Calculate the breakeven point in units 6. Calculate the breakeven point in dollars 7. How many units must Ehrlich sell to earn a profit of $400,000? 8. If advertising which was $700,000 were to increase by 9%, what would be the company's new breakeven point in units? 9. Refer to the original information. If the selling price increases by $5 per unit and sales volume decreases by 10,000 units, and fixed costs remain the same, what will be the change in net income? 10. Refer to the original information. What is the company's margin of safety in dollars
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