Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of Safety

Cheetah Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $11.70 per custom skin, the price is $18, and fixed costs are $152,460.

Required:

1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. $fill in the blank 1 per custom skin

2. How many custom skins must Cheetah Company sell to break even? fill in the blank 2 custom skins

3. If Cheetah Company sells 25,000 custom skins, what is the operating income? $fill in the blank 3

4. Calculate the margin of safety in units and in sales revenue if 25,000 custom skins are sold.

Margin of safety in units	fill in the blank 4	units
Margin of safety in sales revenue	$fill in the blank 5

Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of Safety Cheetah Company manufactures custom-designed skins (covers) for iPods (B) and other portable MP3 devices. Variable costs are $11.70 per custom skin, the price is $18, and fixed costs are $152,460. Required: 1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. 9 per custom skin 2. How many custom skins must Cheetah Company sell to break even? custom skins 3. If Cheetah Company sells 25,000 custom skins, what is the operating income? 9 4. Calculate the margin of safety in units and in sales revenue if 25,000 custom skins are sold. Margin of safety in units units Margin of safety in sales revenue $