MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product. Unit sales price Variable cost per unit Fixed costs per year %24 30 360, 000 a. Determine the contribution margin ratio. b. Determine the sales volume (in dollars) required to break even. c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,00. d. Determine the margin of safety (in dollars) if annual sales total 60,000 units. e. Determine the operating income if annual sales total 60,000 units. a. Contribution margin ratio % b. Break-even dollar sales volume C. Target sales revenue d. Margin of safety sales volume Operating income e
MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product. Unit sales price Variable cost per unit Fixed costs per year %24 30 360, 000 a. Determine the contribution margin ratio. b. Determine the sales volume (in dollars) required to break even. c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,00. d. Determine the margin of safety (in dollars) if annual sales total 60,000 units. e. Determine the operating income if annual sales total 60,000 units. a. Contribution margin ratio % b. Break-even dollar sales volume C. Target sales revenue d. Margin of safety sales volume Operating income e
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product.
Unit sales price | $ | 30 | |
Variable cost per unit | 6 | ||
Fixed costs per year | 360,000 | ||
a. Determine the margin of safety (in dollars) if annual sales total 60,000 units.
b. Determine the operating income if annual sales total 60,000 units.
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