Problem #4 Chapter 8

Consider the following information developed by the accountant at Wind Bicycle Co.:

TotaI $250,000

less: variable expenses $150,000

contribution margin $100,000

less; fixed expenses $80,000

Net income $20,000

per unit-

sales $500

VE $300

contribution margin per unit $200

need the Contrubition Margin Ratio.

Problem #5 Chapter 8

Here is the information from Wind Bicycle Co.:

TotaI $250,000

less: variable expenses $150,000

contribution margin $100,000

less; fixed expenses $80,000

Net income $20,000

per unit-

sales $500

VE $300

contribution margin per unit $200

percent=100-60

cm =40%

need the Breakeven point using the Equation Method

Problem #6 Chapter 8

Using the information above ,

need the breakeven point using the Contribution Margin Method

Problem #7 Chapter 8

Suppose Wind Co. wants to know how many bikes must be sold to earn a profit of $100,000.

need the number of bikes they should produce to have this profit , using either Equation or contribution margin method