Question
Zebra Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $10.80 per custom skin, the price is $16, and
Zebra Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $10.80 per custom skin, the price is $16, and fixed costs are $66,560. Required: 1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. $fill in the blank 1 per custom skin 2. How many custom skins must Zebra Company sell to break even? fill in the blank 2 custom skins 3. If Zebra Company sells 13,000 custom skins, what is the operating income? $fill in the blank 3 4. Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold. Margin of safety in units fill in the blank 4 units Margin of safety in sales revenue
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