Contribution Margin Analysis $-$ CMA Adapted

Bolger and Co$.$ manufactures large gaskets for the turbine industry. Bolger's per unit sales price and variable costs for the current year are as follows.

estimated effect of a $$10$ per unit direct labor increase and a $$10,000$ reduction in fixed costs. Based on these data, it was determined that the breakeven point would

a$.$ decrease by $1,000$ units

b$.$ decrease by $125$ units

c$.$ increase by $375$ units

d$.$ increase by $500$ units

Wilkinson Company sells its single product for $$30$ per unit. The contribution margin ratio is $45\%$ and Wilkinson has fixed costs of $$10,000$ per month. If $3,000$ units are sold in the current month, Wilkinson's income would be

a$.$ $$30,500$

b$.$ $$49,500$

c$.$ $$40,500$

d$.$ $$90,000$

Projected sales for a tent manufacturer are $$510,000.$ Each tent sells for $$850$ and requires $$350$ of variable costs to produce. The tent manufacturer's total fixed costs are $$145,000.$ The tent manufacturer's margin of safety is

a$.310$ units

b$.710$ units

c$.730$ units

d$.1,310$ units