CVP Manufacturing using budget data

You have been asked by the management of Symmetry Designs, a company that manufactures furniture, to provide an explanation for the importance of volume in their business. They present you with the following information from their budget for the current year:

Sales (100,000 units)			$1,000,000
Costs:	Fixed	Variable
Direct Material	$0	$300,000
Direct Labor	0	200,000
Factory Overhead	100,000	150,000
Selling and Administrative	110,000	50,000
Total costs	$210,000	$700,000	910,000
Budgeted Income			$90,000

Respond to the following questions from management. (Be sure to show your calculations):

(a) (5 points) What are the variable costs per unit?

(b) (5 points) What are the fixed costs per unit based on the budget?

(c) (3 points) What is the contribution margin per unit?

(d) (3 points) What is the companys breakeven point?

(e) (3 points) The company would like to earn a profit of 15% of sales in the next year. However, the lease on the factory equipment will be increasing by $25,000. If they raise the selling price by 5% and hold variable costs steady, how many units will they have to produce and sell to earn 15% of sales?