You are the owner-manager of univeristy backpacks, a company that you started this year (20x1). Your company sells two types of backpacks: those for transporting laptop computers and smaller ones not intended for laptop storage. The latter type comes in two styles, with dividers and zippered pockets and without. All backpacks carr.y the unique logos of the colleges in the community. For this right, University backpacks pays a licensing fee on a percentage- of- sales basis. You order only enough inventory to meet immediate sales, so there is no inventory at year end. few alterations or adjustments are made to the backpacks recieved from your wholesaler. HOwever, in addition to affixing the local college emblems, customers sometimes request special stiching or the addition of extra patches to meet their own unique tastes. during its first year of business, university backpacks sold 3,800 back packs (split evenly between laptop and non-laptop style) and reported the following operating results.

sales $152,000

cost of sales $113,256

gross profit $38,744

expenses:

adversting $5,000

licensing fee 6,200

depreciation 2,500

insurance 2,700

misc 1,688

payroll taxes (on

owners salary) 2,000

owners salary 20,000

storage 1,000

income taxes

(refund) (2,503)

telephone 2,500

travel and

entertainment 3,500

total expenses 44,585

net loss ($5,841)

1- determine which costs are fixed and which costs are variable

2-

a. what is the contribution margin per unit

b. what is the breakeven point in units

c. what is the contribution margin ratio

d. what is the break-even point in sales dollars

e. how many units sold to produce a target profit of $25,000

f. how many dollars of sales must be generated to produce a target profit fo $25,000

g. what is the margin of safety with a target profit of $25,000