Title: Bivouac Camping Supply sells harsh weather tents. The company has the following income ...
Post by: ejoty on Jan 18, 2023
Bivouac Camping Supply sells harsh weather 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 break-even point in units? In sales dollars? |
| d. | What is the margin of safety in units? In dollars? |
Title: Bivouac Camping Supply sells harsh weather tents. The company has the following income ...
Post by: jarste123 on Jan 18, 2023
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