Sales..... Variable expenses.. Contribution margin ..... Fixed expenses.. Operating income.. Total $ 150,000 $ ? $ Per Unit 30 ? ? ? 13,500 16,500 % ? ? ?
Sales..... Variable expenses.. Contribution margin ..... Fixed expenses.. Operating income.. Total $ 150,000 $ ? $ Per Unit 30 ? ? ? 13,500 16,500 % ? ? ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
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1.
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Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table:
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a. What is the total contribution margin?
b. What is the total variable expense?
c. How many units were sold?
d. What is the per-unit variable expense?
e. What is the per-unit contribution margin?
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2.
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Answer the following questions about breakeven analysis:
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a. What is the breakeven point in units?
b. What is the breakeven point in sales dollars?
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3.
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Answer the following questions about target profit analysis and safety margin:
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a. How many units must the company sell in order to earn a profit of
$48,000?
b. What is the current margin of safety in units?
c. What is the margin of safety in sales dollars?
d. What is the margin of safety in percentage?
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Transcribed Image Text:Sales....
Variable expenses....
Contribution margin
Fixed expenses..
Operating income .....
$
$
Total
150,000 $
?
?
Per Unit
30
?
13,500
16,500
?
%
?
?
?
Expert Solution
Step 1 Introduction
The contribution margin of a company is the amount of money that is left over from sales after paying all of the variable expenditures that are connected with creating a product. This margin is also referred to as the gross margin. Your net income, also known as profit, is calculated by taking your contribution margin and deducting all of your fixed expenditures, such as rent, equipment leases, and wages.
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