Sunflower Company manufactures and sells a single product. The company's sales and expenses for last year follow:

Requirements
1. Fill in the missing numbers in the preceding table. Use the following questions to help fill in the missing numbers in the table:
a. What is the total contribution margin?
b. What is the total variable expense?
c. How many units were sold?
d. What is the per-unit variable expense?
e. What is the per-unit contribution margin?
2. Answer the following questions about breakeven analysis:
a. What is the breakeven point in units?
b. What is the breakeven point in sales dollars?
3. Answer the following questions about target profit analysis and safety margin:
a. How many units must the company sell in order to earn a profit of $58,000?
b. Go back to the data given in the table. What is the current margin of safety in units?
c. Again, go back to the data in the table. What is the margin of safety in sales dollars?
d. Again, go back to the data in the table. What is the margin of safety in percentage?

Transcribed Image Text:

Total Per Unit $115,000 ? ? 11,500 Sales $50 Variable expenses Contribution margin Fixed expenses Operating income $ 46.000