1) Sales price is $13 per unit. Variable cost per unit is $5. Units sold are 80,000; this is 5000 units above the break-even point. Required: Compute total variable costs and total fixed costs, Show work

2) Variable costs are $1,120,000. Units sold are 40,000. Sales price per unit is $50. Fixed costs are $800,000. Required: How many units must be sold to generate a $60,000 profit ? Show work.

3) Total sales are $1,000,000. Variable costs are $600,000. Fixed costs are $250,000. Required: Compute the contribution margin ratio. Show work

4) Refer to # 3. Compute break even sales volume in dollars.Show work

5) Refer to #3. Compute margin of safety ratio.Show work

6) Sales price per unit is $4. Variable cost per unit is $2. Total fixed costs are $150,000. You are operating at only 50% capacity. A prospective customer has offered to buy 10,000 units at $3 per unit. Should you accept the offer ? Explain your answer. Show work.