Determine what is the monthly margin of safety

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Brian Corporation manufactures a single product. The selling price is $104 per unit, and variable costs amount to $78 per unit. The fixed costs are $36,000 per month.

Problem (a) What is the contribution margin per unit? $_______________ per unit

Problem (b) What is the contribution margin ratio? _______________%

Problem (c) What is the monthly sales volume (in dollars) at the break-even point? $________________

Problem (d) How many units must be sold each month to earn a monthly operating income of $32,000? _______________units

Problem (e) What is the monthly margin of safety (in dollars) if 3,000 units are sold each month? $_______________

Problem (f) What will be the monthly operating income if 3,000 units are sold each month? $_______________

Reference no: EM132739095

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