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vurt777 vurt777
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2 months ago
Bart's Bike Shop has the following income statement.

Sales ($150 per unit)​$150,000
Less Cost of Goods sold ($96 per unit)​    96,000
Gross margin​54,000
Less Operating costs​​
  Salaries$24,000​
  Advertising12,000​
  Shipping ($6 per unit)    6,000   42,000
Operating income​$  12,000

Required:

a.Calculate the contribution margin per unit.
b.Calculate the contribution margin ratio.
c.Calculate the break-even point in units. In sales dollars.
d.Calculate the margin of safety in units. In dollars.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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mkql12mkql12
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2 months ago
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More solutions for this book are available here
a.$150 - ($96 + $6) = $48
b.$48 ÷ $150 = 32%
c.($24,000 + $12,000) ÷ $48 = 750 units; 750 × $150 = $112,500 or
($24,000 + $12,000) ÷ 32% = $112,500
d.1,000 - 750 = 250 units; $150 × 250 = $37,500
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