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Part $1$

Hang Ten Co$.$ produces sports socks. The company has fixed costs of $ $75$ comma $000$ and variable costs of $ $0\mathrm{.}75$ per package. Each package sells for $ $1\mathrm{.}50.$

Requirements

Compute the contribution margin per package and the contribution margin ratio.$($Round your answers to two decimal$$ places.$)$

Find the breakeven point in units and in$$ dollars, using the contribution margin approach.

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Part $1$

Requirement $1.$ Compute the contribution margin per package and the contribution margin ratio.

Start by computing the contribution margin per package$($unit$).$ Select the correct formula and compute the amount. $($Enter the amount to the nearest$$ cent, X$.$XX$.)$

Formula

Amount

Contribution margin per unit $=$

Net sales revenue per unit $-$ Variable cost per unit

$$0\mathrm{.}75$

Part $2$

Now compute the contribution margin ratio. Select the formula and compute the amount. $($Enter the ratio as a whole$$ percent, X$\%.$ Do not enter the$\%$ symbol into the input$$ field.$)$

Formula

Ratio stated as a $\%$

Contribution margin ratio $=$

Contribution margin per unit $$ Net sales revenue per unit

$50$

$\%$

Part $3$

Requirement $2.$ Find the breakeven point in units and in$$ dollars, using the contribution margin approach.

Start with the breakeven point in units. Select the formula and enter the amount.

Formula

Amount

Breakeven point in units $=$

$($Fixed costs $+$ Target profit$)$ Contribution margin per unit

$100,000$

Part $4$

Find the breakeven point in dollars using the contribution margin approach. Select the formula and enter the amount.

Formula

Amount

Breakeven point in sales dollars $=$

$$