Reference no: EM131753083

A service company incurred the following sales and costs: Sales

Sales	$760,000
Fixed administrative costs	$116,000
Fixed selling costs	$84,000
Depreciation	$20,000
Salaries	$165,000
Selling costs that change as sales change	$28,000
Variable cost of providing services	$262,000
Services provided	8,000 units

Compute the following:

Contribution margin per unit Blank 1

Contribution margin ratio Blank 2

Break even in units Blank 3

Break even in sales dollars Blank 4

Units that must be sold to have before tax profit of $500,000 Blank 5

Required sales dollars to achieve a before tax profit of $500,000 Blank 6

Margin of safety in units Blank 7 and margin of safety in dollars Blank 8

Contribution margin Blank 9 , Income Blank 10 , and Operating leverage Blank 11 Percent (%) income will increase if sales increase 20% Blank 12 Income if sales go up 20% Blank 13