Question: Mike Lights sells lamps for $30. The unit variable cost per lamp is $22. Fixed costs total $9,600. Required: a. What is the contribution margin

Mike Lights sells lamps for $30. The unit variable cost per lamp is $22. Fixed costs total $9,600.

Required:

a. What is the contribution margin per lamp?

b. What is the breakeven point in lamps?

c. How many lamps must be sold to earn a pretax income of $8,000?

d. What is the margin of safety, assuming 1,500 lamps are sold?

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