Estimated VC per unit Estimate FC Production Costs: DM $ 8.05 ---- DL 4.80 ---- FOH 1.95
Question:
Estimated VC per unit Estimate FC
Production Costs:
DM $ 8.05 ----
DL 4.80 ----
FOH 1.95 $ 83,250
Selling Expenses:
Sales Salaries and Commission 1.20 32,300
Advertising ---- 7,500
Travel ---- 2,300
Miscellaneous Selling Expense 1.10 4,200
Administrative Expenses
Office and Officers' Salaries ---- 86,400
Supplies .50 5,900
Miscellaneous Administrative Expense 2.20 1,500
The company expects to maintain the same inventories at the end of 2019 as at the beginning of the year.
It is expected that 25,000 units will be sold at $32 per unit.Maximum sales within the relevant range are 35,000 units.
REQUIRED:
- Contribution Margin Income Statement
- Traditional Income Statement
- What is the expected contribution margin per unit? Contribution martin ratio?
- Determine Break Even in Units and Sales
- What is the expected Margin of Safety?
- What is the Operating Leverage?