Top Posters
Since Sunday
14
o
6
1
l
1
J
1
a
1
C
1
r
1
1
A
1
1
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
ejoty ejoty
wrote...
Go to Answer
Posts: 81
Rep: 0 0
1 months ago
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​
  Advertising10,000​
  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?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 17 times
1 Reply
Replies
Answer verified by a subject expert
jarste123jarste123
wrote...
#1
Posts: 68
Rep: 1 0
1 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
a.$1,000 - ($475 + $5 + $20) = $500
b.$500 ÷ $1,000 = 50%
c.($40,000 + $10,000) ÷ $500 = 100 units; 100 × $1,000 = $100,000 or
($40,000 + $10,000) ÷ 50% = $100,000
d.200 - 100 = 100 units; $200,000  ̶ $100,000 = $100,000
1

Related Topics

ejoty Author
wrote...

1 months ago
Thanks for your help!!
derya1234
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
ediblefruitz
wrote...

2 hours ago
Thank you, thank you, thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  64 People Browsing
 315 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 250
  
 307
  
 133
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 325
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?