Leprechaun Enterprises Inc., is considering building a manufacturing plant in County Cork. Predicting sales of 100,000 units, Leprechaun estimates the following expenses:

An Irish firm that specializes in marketing will be engaged to sell the manufactured product and will receive a commission of 10% of the sales price. None of the U.S. home office expense will be allocated to the Irish facility.

Required:
1. If the unit sales price is $2, how many units must be sold to break even?
2. Calculate the margin of safety ratio.
3. Calculate the contribution margin ratio.

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Total Anual Expes hat Are Percent of Total Annual Expenses That Are Expenses $19,000 26,000 40,000 Fixed 10% 20% 40% 60% Materials. Overhead.. Marketing and administration.. 14,000 $99,000