The following information relates to the only product sold by Mastrolia Manufacturing: Sales price per unit Variable cost per unit Fixed costs per year Required: a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 30,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio a. Break even sales dollars b. Margin of safety (in dollars) $ 110 66 770,000 %

The following information relates to the only product sold by Mastrolia Manufacturing: Sales price per unit Variable cost per unit Fixed costs per year Required: a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 30,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio a. Break even sales dollars b. Margin of safety (in dollars) $ 110 66 770,000 %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...

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