1. CVP Analysis; Break-even point, margin of safety: Davies Violins, Ltd, produces and sells a single product,...
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1. CVP Analysis; Break-even point, margin of safety: Davies’ Violins, Ltd, produces and sells a single product, violins, whose selling price is $325.00 per unit and whose variable cost is $98.00 per unit. The company's fixed expense is $47,300 per month. The current volume of sales is 350 violins per month.
- Determine the monthly total contribution margin at the current volume of sales.
- Determine the monthly net income (loss) at the current volume of sales.
- Determine the monthly break-even point:
- In units (round your answer up to the nearest whole unit)
- In sales dollars (round your answer to the nearest cent (i.e. 2 decimal places)
- What is the company’s margin of safety:
- In units
- In sales dollars
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