Question: Michael Ltd makes calculators that sell for $20 each. The companys annual production and sales is 20,000 calculators. The fixed manufacturing overhead is 30,000 and

Michael Ltd makes calculators that sell for $20 each. The companys annual production and sales is 20,000 calculators. The fixed manufacturing overhead is 30,000 and $50,000 is fixed administrative expenses. The following per unit costs have been determined for each chopping board.

Direct Materials $3.00 Direct Labour $1.00 Variable Manufacturing overheads $0.50 Variable Selling Expenses $0.50

Total $5.00

a. Calculate the unit contribution margin and the contribution margin ratio for a calculator.

b. Determine the breakeven point in number of calculators and sales dollars.

c. Determine the Net Income for Michael for the year.

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