Preston Company manufactures and sells a single product. The company's sales and expenses for last year follow:

Requirements
1. Fill in the missing numbers in the preceding table. Use the table to answer the following questions:
a. What is the total contribution margin?
b. What is the per unit contribution margin?
c. What is the operating income?
d. How many units were sold?
2. Answer the following questions about breakeven analysis:
a. What is the breakeven point in units?
b. What is the breakeven point in sales dollars?
3. Answer the following questions about target profit analysis and safety margin:
a. How many units must the company sell in order to earn a profit of $55,000?
b. What is the margin of safety in units?
c. What is the margin of safety in sales dollars?
d. What is the margin of safety in percentage?

Transcribed Image Text:

Total Per Unit S40 D) Sales $116,000 Variable expen 87000 32 Fixed e 11,000 18,000 Operating income..