**SBD Phone Company: Analyzing Financial Metrics for Waterproof Phone Case**SBD Phone Company sells its waterproof phone case for $98 per unit. Fixed costs total $182,000, and variable costs are $44 per unit.### (1) Determine the Contribution Margin Ratio**Contribution Margin Calculation per Unit:**- Selling Price per Unit: $98- Variable Cost per Unit: $44- Contribution Margin per Unit: $98 - $44 = $54**Contribution Margin Ratio:**\[ \text{Contribution Margin Ratio} = \frac{\text{Contribution Margin per Unit}}{\text{Selling Price per Unit}} \]\[ \text{Contribution Margin Ratio} = \frac{54}{98} \approx 0.551 \text{ or } 55.1\% \]### (2) Determine the Break-Even Point in Dollars**Break-Even Point Calculation:**\[ \text{Break-Even Point in Dollars} = \frac{\text{Fixed Costs}}{\text{Contribution Margin Ratio}} \]\[ \text{Break-Even Point in Dollars} = \frac{182,000}{0.551} \approx 330,309.44 \]Thus, the SBD Phone Company needs to achieve approximately $330,309.44 in sales to break even.

Break-even analysis is a technique widely used by the production department. It helps to determine…

SBD Phone Company sells its waterproof phone case for $98 per unit. Fixed costs total $182,000, and variable costs are $44 per unit. (1) Determine the contribution margin ratio. per unit Contribution margin Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio %3D (2) Determine the break-even point in dollars. Choose Numerator: Choose Denominator: Break-Even Point in Dollars %3D Break-even point in dollars %3D

SBD Phone Company sells its waterproof phone case for $98 per unit. Fixed costs total $182,000, and variable costs are $44 per unit. (1) Determine the contribution margin ratio. per unit Contribution margin Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio %3D (2) Determine the break-even point in dollars. Choose Numerator: Choose Denominator: Break-Even Point in Dollars %3D Break-even point in dollars %3D

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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calculate contribution margin ratio, breakeven point in amount and breakeven point in units
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In the month of March, Cullumber Salon serviced 570 clients at an average price of $170. During the month, fixed costs were $29,580 and variable costs were 60% of sales. Contribution margin in dollars-38760 Contribution margin per unit- 68 Contrubution margin ratio- 40% SOLVE FOR B PLEASE
3. JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Product Selling price per unit Variable cost per unit Trunk switch $60.00 $28.00 Gas door switch $75.00 $33.00 Glove box light $40.00 $22.00 Their sales mix is reflected in the ratio 4:4:1. What is the overall Composite Unit Contribution Margin for JJ Manufacturing with their current product mix? If annual fixed costs shared by the three products are $18,840, how many units of each product are to be sold in order for JJ Manufacturing to break even? Trunk Switch? Gas Door Switch? Glove Box Light? Determine their break-even point in sales dollars. Trunk Switch? Gas Door Switch? Glove Box Light?
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2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place.