Question
Zebra Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $12.00 per custom skin, the price is $20, and
Zebra Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $12.00 per custom skin, the price is $20, and fixed costs are $144,800. Required:
1.What is the contribution margin for one custom skin? Round your answer to the nearest cent. $ per custom skin
2. How many custom skins must Zebra Company sell to break even? custom skins
3. If Zebra Company sells 19,000 custom skins, what is the operating income? $
4. Calculate the margin of safety in units and in sales revenue if 19,000 custom skins are sold. Margin of safety in units units Margin of safety in sales revenue $
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