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1) Calculate variable cost per bottle. (Round variable cost per bottle to 2 decimal places, e.g. 0.25.
2) Compute the break-even point in (1) units and (2) dollars.(Round answers to 0 decimal places, e.g. 1,225.)
3) Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)
4) Determine the sales dollars required to earn net income of $240,910. (Round answers to 0 decimal places, e.g. 1,225.)
| Sales |
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$1,816,000 |
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Selling expenses-variable |
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$66,600 |
| Direct materials |
|
427,000 |
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Selling expenses-fixed |
|
65,200 |
| Direct labor |
|
353,000 |
|
Administrative expenses-variable |
|
55,120 |
| Manufacturing overhead-variable |
|
315,000 |
|
Administrative expenses-fixed |
|
62,000 |
| Manufacturing overhead-fixed |
|
292,000 |
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