Lancer audio produces a high-end DVD player that sells for $1250.Totalfor July operating expenses were as follows:

Question:

Lancer audio produces a high-end DVD player that sells for $1250.  Total  for July operating expenses were as follows:
Units produced and sold ... 140
Component cost ............ 67000
Supplies ........................... 1680
Assembly labour ............. 23500
Rent................................ 2200
Supervisor salary ............ 5500
Electricity ......................... 250
Telephone ........................ 180
Gas................................... 200
Shipping ............................ 540
Advertising ...................... 2500
Administration costs ...... 14500
Total............................. 119050
Required: A. Use account analysis to determine fixed cost per month and variable cost per DVD player.
B. Project total cost for august assuming production and sales of 160 units.
C.  What is the per DVD?
D.  Estimate total profit assuming production and sales of 160 units.
E.   Lancer audio is considered an order for 100 DVD players, to be produced in the next 10 months, from a customer in Canada.  The selling price will be $900 per unit (under the normal price). However, the Lancer audio name will not be attached to the product.  What will be the impact on company profit associated with this order?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...