Exercise 11-19A (Algo) Margin of safety LO 11-6 Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. $160 $87 $459,900 c. Sales level in units that Ender must reach to earn a profit of $211,700.
Exercise 11-19A (Algo) Margin of safety LO 11-6 Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. $160 $87 $459,900 c. Sales level in units that Ender must reach to earn a profit of $211,700.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 11-19A (Algo) Margin of safety LO 11-6
Information concerning a product produced by Ender Company appears here:
Sales price per unit
Variable cost per unit
Total annual fixed manufacturing and operating
costs
$160
$87
$459,900
Required
Determine the following:
a. Contribution margin per unit.
b. Number of units that Ender must sell to break even.
c. Sales level in units that Ender must reach to earn a profit of $211,700.
d. Determine the margin of safety in units, sales dollars, and as a percentage.
Complete this question by entering your answers in the tabs below.
Req A to C
Req D
a. Contribution margin per unit.
b. Number of units that Ender must sell to break even.
c. Sales level in units that Ender must reach to earn a profit of $211,700.
a. Contribution margin
b Break-even in units
c. Break-even in units to earn profit of $211,700
per unit
M
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