EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management recently finished analyzing the resufts of the company's operations for the current month, At a break-even point of 40,000 units, the company's total variable costs are $50,000 and its total fixed costs amount to $20,000. a. Calculate the contribution margin per unit. (Round your answer to 2 decimal places.) b. Calculate the company's margin of safety if monthly sales total 45,000 units, c. Estimate the company's monthly operating loss if it sells only 38,000 units. d-1. Compute the total cost per unit at a production level of 40,000 pens per month. (Round your answer to 2 decimal places.) d-2 Compute the total cost per unit at a production level of 50,000 pens per month. (Round your answer to 2 decimal places.) Contribution margin per unit Margin of safety Operating loss b. e. d-1 Total cost per unit d-2 Total cost per unit

EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management recently finished analyzing the resufts of the company's operations for the current month, At a break-even point of 40,000 units, the company's total variable costs are $50,000 and its total fixed costs amount to $20,000. a. Calculate the contribution margin per unit. (Round your answer to 2 decimal places.) b. Calculate the company's margin of safety if monthly sales total 45,000 units, c. Estimate the company's monthly operating loss if it sells only 38,000 units. d-1. Compute the total cost per unit at a production level of 40,000 pens per month. (Round your answer to 2 decimal places.) d-2 Compute the total cost per unit at a production level of 50,000 pens per month. (Round your answer to 2 decimal places.) Contribution margin per unit Margin of safety Operating loss b. e. d-1 Total cost per unit d-2 Total cost per unit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

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Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
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Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
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