Use the Following Information to Answer the Questions Below

Our Business had the Following Information for their Business, the Production and Sales of Mountain Bikes;

1. Bikes are Sold to Customers for an Average of $250 each.
2. Average Monthly Sales are 500 Bikes per Month
3. Direct Materials are $60 per unit
4. Variable MOH Costs are $20 per unit
5. Sales Related Costs are $10 per unit.
6. Building Rent is $6,000 per month
7. Employee Salaries are $5,000 per month
8. Advertising Costs are $4,000 per month

QUESTIONS

Show your Answers as a Number Only Rounded to the Nearest Dollar unless otherwise NOTED. No Symbols such as Dollar Signs, Commas or Percents. Show Any Negative Number in Parens as Follows = (100)

1. Compute the Contribution Margin per Unit = = Show your Answer as a Number Only out 2 decimal Places. No Dollar Signs.
2. Compute the Contribution Margin Ratio % Percent = = Round your Answer to 2 decimal spots as a Percent.
3. Compute the Break-Even Point in Units = = Show your Answer in Full Units.
4. Compute the Number of Bikes We need to Sell to make a Target Net Income Profit of $15,000 = = Show your Answer in Full Units.
5. Compute the Net Income for the Month = = Use the Info from the Current CVP situation above.
6. Compute the Revised Net Income for the Month for Proposal #1 = = Proposal #1 Assumes If We Increase the Advertising Costs from $4,000 to $8,000 per month and that will Increase Sales Volume By 10%.
7. Compute the Revised Net Income for the Month for Proposal #2= = Proposal #2 Assumes if We Increase the the Sales Price by 10% per Unit that will Decrease the Sales Volume By 20%.
8. Which is the Best Scenario ?= =Show your answer in all Caps and use one of the Following = CURRENT, or PROPOSAL1 or PROPOSAL2.
9. Compute the Dollar Benefit of your Answer to the Question Above #8 = = Round to the Nearest Dollar