Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of SafetyZebra Company manufactures custom-designed skins (covers) for iPods® and other portable MP3 devices. Variable costs are $7.80 per custom skin, the price is $12, and fixed costs are $50,400,Required:1. What is the contribution margin for one custom skin? Round your answer to the nearest cent.per custom skin2. How many custom skins must Zebra Company sell to break even?custom skins3. If Zebra Company sells 13,000 custom skins, what is the operating income?4. Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold.Margin of safety in unitsunitsMargin of safety in sales revenue Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of SafetyZebra Company manufactures custom-designed skins (covers) for iPods® and other portable MP3 devices. Variable costs are $7.80 per custom skin, the price is $12, and fixed costs are $50,400.Required:1. What is the contribution margin for one custom skin? Round your answer to the nearest cent.per custom skin2. How many custom skins must Zebra Company sell to break even?custom skins3. If Zebra Company sells 13,000 custom skins, what is the operating income?4. Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold.Margin of safety in unitsunitsMargin of safety in sales revenue

The contribution margin appears to be the gap between an item's price and any associated variable…

Answered: Contribution Margin, Break-Even Units,…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8E

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Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of Safety Zebra Company manufactures custom-designed skins (covers) for iPods® and other portable MP3 devices. Variable costs are $7.80 per custom skin, the price is $12, and fixed costs are $50,400, Required: 1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. per custom skin 2. How many custom skins must Zebra Company sell to break even? custom skins 3. If Zebra Company sells 13,000 custom skins, what is the operating income? 4. Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold. Margin of safety in units units Margin of safety in sales revenue

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