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The New Age Pet Store sells Diva Doggie pet waste disposal systems for $50 each. The systems include ...

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The New Age Pet Store sells Diva Doggie pet waste disposal systems for $50 each. The systems include ...

The New Age Pet Store sells Diva Doggie pet waste disposal systems for $50 each. The systems include the unit and a one-year supply of enzyme digester waste terminator. The cost of the unit and enzyme is $35. The only other costs are fixed costs of $3,000. During the current period, New Age sold 600 of the units through the store's new on-line catalog division.

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 dollars?

d.	What is the margin of safety in units? In dollars?

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Managerial Accounting

Edition: 4^th

Author: Davis

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