# Contribution Margin, CVP, Net Income, Margin of SafetyNail Glow, Inc., produces novelty nail polishes. Each bottle sells for \$5.90. Variable unit costs are as follows:Bottle, packing material \$1.15Acrylic base\$0.86PigmentsSelling commission0.570.14Other ingredients0.43Fixed overhead costs are \$34,475 per year. Fixed selling and administrative costs are \$6,720 per year. Nail Glow sold 35,000 bottles last yearRequired:1. What is the contribution margin per unit for a bottle of nail polish? Round your answer to the nearest centper unitWhat is the contribution margin ratio? Round your answer to four decimal places. Use the rounded value in the subsequent computations. (Express as a decimal-based amount rather than a whole percent.)2. How many bottles must be sold to break even?bottlesWhat is the break-even sales revenue? Round your answer to the nearest dollar, if rounding is required. Use the rounded value in the subsequent computations.\$3. What was Nail Glow's operating income last year?4. What was the margin of safety in revenue?5. Suppose that Nail Glow, Inc., raises the price to \$6.50 per bottle, but anticipated sales will drop to 28,750 bottles. What will the new break-even point in units be? Round your answer to the nearest whole number of units.bottlesShould Nail Glow raise the price?

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Asked Nov 8, 2019
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## Expert Answer

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Hey, since there are multiple questions posted, we will answer first three requirements. If you want any specific requirement to be answered, then please submit that question only or specify the question number in your message.

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Requirement 1:

a) Calculate the contribution margin per unit for a bottle of nail polish.

Step 3

b) Calculate the contribution mar...

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