Computing contribution-margin ratio

Assignment Help Accounting Basics

Reference no: EM13128654

Explosion Company produces fireworks and has provided the following information:

Total fixed costs $100,000
Unit variable costs $6
Planned unit sales 30,000
The break-even point is 25,000 units.

Required:

a. Compute the selling price per unit.

b. Compute the contribution-margin ratio.

c. Compute the break-even volume in dollars.

d. Compute the margin of safety.

Reference no: EM13128654

Questions Cloud

What is the volume of the shell : a graduated cylinder reads 4 ml of water.then a shell is dropped into it and the water level rises to 12 ml.what is the volume of the shell?

Illustrate what will be bickley wacc with capital structure : What is the WACC (Weighted Average Cost of Capital) of Bickely with its 30/70 capital structure? Bickley’s average borrowing rate with this capital structure is 7.5%. Illustrate what will be Bickley’s WACC with its 15/85 capital structure?

Calculate the percent yield : methane and hydrogen sulfide form when 36g H2 reacts with carbon disufide. Calculate the percent yield if the actual yield of CH4 is 69.8

Find probability-mean energy consumption level is greater : If 50 different homes are randomly selected, find the probability that their mean energy consumption level for September is greater than 1075 KWh.

Computing contribution-margin ratio : a. Compute the selling price per unit. b. Compute the contribution-margin ratio.

What is the amount of allowable depreciation : Arnie, a college student, purchased a truck in 2010 for $6,000. He used the truck 70% of the time as a distributor for the local newspaper and 30% of the time for personal use. The truck has a five year recovery period and he claimed depreciation ..

Illustrate what would you do to collect on a customer unpaid : If you were a business owner or manager, illustrate what would you do to collect on a customer unpaid bill? At what point would you deem the account bad debt and write it off?

Find the probability that red ball will be chosen : What is the probability that a red ball will be chosen? If we randomly select 5 balls with replacement, what is the probability distributon of x-the neumber of red balls in the sample?

Determine the mass of silver phosphate formed : determine the mass of silver phosphate formed when 4.33 g of silver nitrate is reacted with 22.7 mL of .118 M K3PO4 ?

User Account

All Pages