Current Attempt in Progress

Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one

of the composite models of the kayak division. They have provided the following production and operational costs necessary to

produce one composite kayak.

Bill and Diane have asked you to provide a cost$-$volume$-$profit analysis, to help them finalize the budget projections for the upcoming

year. Bill has informed you that the selling price of the composite kayak will be $$2,200.$

$($a$)$

Calculate unit variable costs.

Unit variable costs

$

per unit

eTextbook and Media

Attempts: $0$ of $3$ used

Using multiple attempts will impact your score.

$10\%$ score reduction after attempt $2($b$)$

Determine the unit contribution margin.

Contribution margin

$

per unit

eTextbook and Media

Attempts: $0$ of $3$ used

Using multiple attempts will impact your score

$10\%$ score reduction after attempt $2$

$($c$)$

Using the unit contribution margin, determine the break$-$even point in sales units for this product line.

Break$-$even point

units

eTextbook and Media

Attempts: $0$ of $3$ used

Using multiple attempts will impact your score

$10\%$ score reduction after attempt $2($d$)$

Assume that Current Designs would like to earn net income of $$328,000$ on this product line. Using the unit contribution margin,

calculate the number of units that need to be sold to achieve this goal.

Number of units to be sold

units

eTextbook and Media

Attempts: $0$ of $3$ used

Using multiple attempts will impact your score

$10\%$ score reduction after attempt $2$

$($e$)$

Based on the most recent sales forecast, Current Designs expects to sell $1,000$ units of this model. Calculate the margin of safety

in dollars and the margin of safety ratio. $($Round percentage to $2$ decimal places, $25\mathrm{.}50\%.)$

Margin of safety $

Margin of safety ratio

$\%$

eTextbook and Media

Attempts: $0$ of $3$ used

Using multiple attempts will impact your score.

$10\%$ score reduction after attempt $2$