Calculate the contribution margin

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Reference no: EM133381280

Question: Cost Analysis

The following information is available for the Foster Co.

Product Selling Price: $75

Variable Cost Per Unit: $32

Monthly Fixed Costs: $205,000

Tax Rate: 30%

Required:

1. Calculate the contribution margin.

2. Calculate the contribution margin ratio.

3. Calculate the break-even point in units.

4. Calculate the break-even point in dollars.

5. Calculate the sales in units required to produce an after tax income of $20,000.

6. Calculate the sales in dollars required to produce an after tax income of $20,000.

7. Calculate the margin of safety if the expected sales for the month are $500,000.

Reference no: EM133381280

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