Bob 's Bike Shop has the following income statement Sales ($150 per unit) $150,000 Less Cost of Goods sold ($96 per unit) 96,000 Gross margin 54,000 Less Operating costs Salaries $24,000 Advertising 12,000 Shipping ($6 per unit) 6,000 42,000 Operating income $ 12,000 Required a Calculate the contri...

a Calculate the contribution margin per unit The contribution margin per unit is calculated by subtr ...

Bob's Bike Shop has the following income statement. Sales ($150 per unit) $150,000 Less Cost of Goods

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Bob's Bike Shop has the following income statement.

Sales ($150 per unit)		$150,000
Less Cost of Goods sold ($96 per unit)		96,000
Gross margin		54,000
Less Operating costs
Salaries	$24,000
Advertising	12,000
Shipping ($6 per unit)	6,000	42,000
Operating income		$ 12,000

Required:

a. Calculate the contribution margin per unit.

b. Calculate the contribution margin ratio.

c. Calculate the breakeven point in units. In sales dollars.

d. Calculate the margin of safety in units. In dollars.

Related Book For answer-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133866292

5th edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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Posted Date: Jul 11, 2023 07:34 AM

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Bob's Bike Shop has the following income statement. Sales ($150 per unit) $150,000 Less Cost of Goods

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a Calculate the contribution margin per unit The contribution margin per unit is calculated by subtr... View the full answer

Horngrens Financial and Managerial Accounting

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