McGyver Manufacturing Industries has two divisions—Basic and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available:

Basic Division Premium Division Total

Sales $400,000 $600,000 $1,000,000

Variable costs 280,000 360,000

Contribution margin $120,000 $240,000

Total fixed costs $300,000

25. What is the weighted-average contribution margin ratio?

26. What is the break-even point in dollar sales?

27. The following monthly data are available for Joyce Company which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?

28. Toto Manufacturing has fixed costs of $3,000,000 and variable costs are 40% of sales. What are the required sales if Toto desires a net income of $300,000?

29. Ronnie, Inc. is planning to sell 900,000 units for $1.50 per unit. The contribution margin ratio is 20%. If Ronnie will break even at this level of sales, what are the fixed costs?

30. In applying the high-low method, what is the unit variable cost?

Month Miles Total Cost

January 80,000 $192,000

February 50,000 160,000

March 70,000 188,000

April 90,000 260,000