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Cost Accounting: Information below is for the production and sale of 5,000 units for this year. The
6 months ago
15
Information below is for the production and sale of 5,000 units for this year. The sales price is $300 per unit.
Sales
Variable costs
$ 1,500,000
$285,000
Metal for casing
Wages of assembly workers
Stands for units
Fixed costs
Taxes on factory
Factory maintenance
Factory machinery depreciation
Administrative salaries
440,000 175,000
$ 9,000
18,000
78,000
135,000
1. Compute contribution margin per unit and contribution margin ratio.
Contribution margin per unit
Contribution margin ratio
%
2. Compute the break-even points in units and in sales dollars.
Break-even in units
units
Break-even in sales dollars
3. Compute the margin of safety in dollars and in percent.
Margin of safety in dollars
Margin of safety (%)
%
#CostAccounting
#Accounting
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