Stormy Camping Supply sells tents. The company has the following income statement. Sales ($1,000 per unit) $200,000
Fantastic news! We've Found the answer you've been seeking!
Question:
Stormy Camping Supply sells tents. The company has the following income statement.
Sales ($1,000 per unit) | $200,000 | |
Less Cost of Goods sold ($475 per unit) | 95,000 | |
Gross margin | 105,000 | |
Less Operating costs | ||
Salaries | $40,000 | |
Advertising | 10,000 | |
Sales commissions ($5 per unit) | 1,000 | |
Shipping ($20 per unit) | 4,000 | 55,000 |
Operating income | $ 50,000 |
Required:
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the breakeven point in units? In sales dollars?
d. What is the margin of safety in units? In dollars?
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
Posted Date: