ACCT 102 - Please Do All Subparts MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unitinformation relating to the manufacture and sale of this product.Unit sales priceVariable cost per unitFixed costs per year%24306.360,000a. Determine the contribution margin ratio.b. Determine the sales volume (in dollars) required to break even.c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000.d. Determine the margin of safety (in dollars) if annual sales total 60,000 units.e. Determine the operating income if annual sales total 60,000 units.a.Contribution margin ratiob.Break-even dollar sales volumeesC. Target sales revenued. Margin of safety sales volumee. Operating income

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Chapter16: Cost-volume-profit Analysis

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ACCT 102 - Please Do All Subparts

MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit
information relating to the manufacture and sale of this product.
Unit sales price
Variable cost per unit
Fixed costs per year
%24
30
6.
360,000
a. Determine the contribution margin ratio.
b. Determine the sales volume (in dollars) required to break even.
c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000.
d. Determine the margin of safety (in dollars) if annual sales total 60,000 units.
e. Determine the operating income if annual sales total 60,000 units.
a.
Contribution margin ratio
b.
Break-even dollar sales volume
es
C. Target sales revenue
d. Margin of safety sales volume
e. Operating income

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MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product.


Unit sales price	$	30
Variable cost per unit		6
Fixed costs per year		360,000

a. Determine the margin of safety (in dollars) if annual sales total 60,000 units.

b. Determine the operating income if annual sales total 60,000 units.

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