CVP problems

Part 4. CVP Problems (20 points) 1) Currently, the unit selling price is $60, the variable cost is $35, and the total fixed costs, $130,000 (8) Compute the contribution margin earned per unit s (b) Compute the CM ratio % (c) Compute the current break-even sales (units) units 2) Distler Manufacturing sold 410,000 units of its product for $68 per unit in 2020. Variable cost per unit is $60, and total fixed costs are $1,640,000. Required: 1. Calculate (a) contribution margin and (b) operating income. 2. Distler's current manufacturing process is labor intensive. Martha Schossen. Distler's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $5,330,000. The variable costs are expected to decrease to S54 per unit. Distler expects to maintain the same sales volume and selling price next year. How would acceptance of Schoenen's proposal affect your answers to (a) and (b) in requirement 17 3. Should Distler accept Schoenen's proposal? Explain. 3) Maxwell Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 400,000 280,000 Variable expenses Contribution margin Fixed expenses Net operating income 120,000 100,000 20,000 What is total contribution margin if sales volume increases by 20%? A) $80,000 B) $158,400 C) $200,000 D) $144,000 4) Tunde Corporation has a margin of safety percentage of 20% based on its actual sales. The break-even point is $500,000 and the variable expenses are 60% of sales. Given this information, the actual profit is: A) S65,000 B) $55,000 550,000 D) $41,500