Sales $415,000 Total variable cost 302,950 Contribution margin $112,050 Total fixed cost 64,800 Operating income $ 47,250

Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:   EstimatedFixedCost   EstimatedVariableCost(perunitsold) Production costs:             Direct materials     $13       Direct labor     9       Factory overhead $210,100     6     Selling expenses:             Sales salaries and commissions 43,700     3       Advertising 14,800             Travel 3,300             Miscellaneous selling expense 3,600     3     Administrative expenses:             Office and officers' salaries 42,700             Supplies 5,300     1…

Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Sales (10,000 units) Variable costs Contribution margin Fixed expenses Net income $500,000 250,000 250,000 189,900 $60,100 Per Unit $50 25.00 $25.00 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round

Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:   EstimatedFixed Cost   Estimated Variable Cost(per unit sold) Production costs:             Direct materials     $13       Direct labor     9       Factory overhead $212,900     6     Selling expenses:             Sales salaries and commissions 44,200     3       Advertising 15,000             Travel 3,300             Miscellaneous selling expense 3,700     3     Administrative expenses:             Office and officers' salaries 43,200             Supplies 5,300     1…