Northenscold Company offers several items. Information of average income and costs are the following:

Selling price per unit$20. 00

Varying costs every unit:

Immediate materials$4. 00

Direct manufacturing labor$1. 60

Manufacturing overhead$0. 40

Selling costs$2. 00

Annual set costs $96, 000

1 ) Calculate the contribution perimeter per product.

CM= 20 dollars - $4 - $1. 60 - $0. forty five - $2 = $12

Contribution Margin Ratio sama dengan CM/Selling Cost =12/20=0. 6

Thus, the breakeven justification in total revenue dollars can be:

Fixed Costs = 96000/0. 6 sama dengan $160, 1000 Contribution Margin Ratio

2 . Calculate the number of units Northenscold's must promote each year in order to even.

FC/CM 96000/12 =8000units

3. Determine the number of units Northenscold's must sell to yield money of $144, 000.

(FC+ Profits)/CM = 96000+144000/12 = 20000 models

2 . Berhannan's Cellular provides phones intended for $100. The unit variable price per telephone is $50 plus a selling commission of 10%. Set manufacturing costs total $1, 250 monthly, while set selling and administrative costs total $2, 500. A. What is the contribution margin per phone?

CM every phone = $100 - $60 sama dengan $40

M. What is the breakeven point in phones?

Breakeven in telephones FC/CM sama dengan 3750/40

Breakeven Point = 94 phones

c. Just how many cell phones must be sold to earn a targeted income of $7, 500? (FC+ Profits)/CM sama dengan (3750+7500)/40 = 281. 25 phones

To attain target earnings: Must sell 282 telephones

RSE Company sells its product intended for $10 per unit. Their variable value is $3 every unit, and total fixed costs happen to be $700. Supposing next period's estimated sales are 250 units and this 250 products is within the relevant range, calculate the following amounts: a. Degree of operating influence

b. Margin of safety in models

c. Margin of safety in revenues

d. Predicted income or loss (indicate which)

Solution RSE Firm

a....