Reference no: EM132757695

Questions - PLEASE PROVIDE ANSWER IN PROPER FORMAT.

1. Rumpza Company sells 8,000 units at $50 per unit. Variable costs are $40 per unit, and fixed costs are $20,000. Determine (a) the contribution margin ratio, (b) the unit con- tribution margin, and (c) income from operations.

2. Frankel Enterprises sells a product for $60 per unit. The variable cost is $40 per unit, and fixed costs are $30,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $65 per unit.

3. Steward Inc. sells a product for $40 per unit. The variable cost is $30 per unit, and fixed costs are $15,000. Determine (a) the break-even point in sales units and (b) the required sales in units if the company desires a target profit of $15,000.

4. Dewi Inc. has fixed costs of $220,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.

Product Selling Price Variable Cost per Unit Contribution Margin per Unit

A $120 $100 $20

B 75 45 30

The sales mix for products A and B is 80% and 20%, respectively. Determine the break- even point in units of A and B.

5. Ruth Enterprises reports the following data:

Sales $800,000

Variable costs 350,000

Contribution margin 450,000

Fixed costs 225,000

Income from operations $225,000

Determine Ruth Enterprises's operating leverage.