Sabrina Inc., sells table for $110. The unit variable cost per table is $85. Fixed costs total $475,000. Required: a. What is the contribution margin per table? b. What is the breakeven point in table? C. How many table must be sold to earn a pretax income of $450,000? d. What is the margin of safety, assuming 33 000 tires are sold?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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Sabrina Inc. sells table for $110. The unit variable cost per table is $85. Fixed costs total $475,000.
Required:
a
What is the contribution margin per table?
b.
What is the breakeven point in table?
C.
How many table must be sold to earn a pretax income of $450 000?
d.
What is the margin of safety, assuming 33 000 tires are sold?
Transcribed Image Text:Sabrina Inc. sells table for $110. The unit variable cost per table is $85. Fixed costs total $475,000. Required: a What is the contribution margin per table? b. What is the breakeven point in table? C. How many table must be sold to earn a pretax income of $450 000? d. What is the margin of safety, assuming 33 000 tires are sold?
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