Cheetah Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $8.40
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Question:
Cheetah Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $8.40 per custom skin, the price is $12, and fixed costs are $94,320.
Required:
1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. $
2. How many custom skins must Cheetah Company sell to break even?
3. If Cheetah Company sells 27,000 custom skins, what is the operating income? $
4. Calculate the margin of safety in units and in sales revenue if 27,000 custom skins are sold.
Margin of safety in units | units | |
Margin of safety in sales revenue | $ |
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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