Compute break-even point in dollar-contribution margin ratio

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Reference no: EM13823384

Rawling Corporation sells golf bags and has developed the following information:

Sales revenue $2,254,400

Variable cost of goods sold 65.5% of sales

Fixed cost of goods sold $152,172

Variable selling expense 6% of sales

Variable administrative expense 3.5% of sales

Fixed selling expense $202,896

Fixed administrative expense $315,616

For the year ended December 31, 2015, Rawling Corporation produced and sold 140,900 golf bags.

Instructions-show all computations

(a) Prepare a detailed CVP income statement using the contribution margin format for Rawling Corporation for 2015.

(b) Compute the contribution margin per unit.

(d) Compute the break-even point in dollars.

(e) Compute the margin of safety in dollars.

(f) Compute the margin of safety ratio.

(g) Compute the number of golf bags to be sold to earn a target income of $436,790.

Reference no: EM13823384

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