Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of SafetyCheetah Company manufactures custom-designed skins (covers) for iPods® and other portable electronic devices. Variable costs are $9.20 per custom skin, the price is$19, and fixed costs are $104,860. 1. What is the contribution margin for one custom skin? Round your answer to the nearest cent.$per custom skin2. How many custom skins must Cheetah Company sell to break even?custom skins3. If Cheetah Company sells 13,000 custom skins, what is the operating income?

Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Answered: Cheetah Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cheetah Company manufactures custom-designed skins (covers) for iPods® and other portable electronic devices. Variable costs are $9.20 per custom skin, the price is $19, and fixed costs are $104,860.