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Use the following information answer the next three questions Marine Layer produces a product and provides you with the following information for September: Direct
Use the following information answer the next three questions Marine Layer produces a product and provides you with the following information for September: Direct Materials $25/unit Direct Labor $10/unit Equipment Rental $10,000 Office Administration Cost $5,000 Sales Commissions $5/unit Units Sold 1,000 Selling Price $65/unit 1. What is Marine Layer's contribution margin for the month? a. $10,000 b. $30,000 c. $20,000 d. $25,000 c. $40,000 2. If Marine Layer's increased units sold by 20%, by what percentage would profit increase? a. 20% b.50% c. 70% d. 80% c. 100% 3. What is Marine Layer's margin of safety (in units) for the month a. 200 b. 250 c.300 d. 400 e. 500
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