The holiday card company a producer of speciality cards has

Reference no: EM13484522

The Holiday Card Company, a producer of speciality cards, has asked you to complete several calculations based upon the followin information:

Income Tax rate: 40%

Selling price per unit: $7.90

Varibale cost per unit: $5.78

Total Fixed Cost: $84,800.00

Required:

a) What is the unit contribution margin?

b) What is the contribution margin ratio?

c) what is the break even point in cards?

d) If your sales doubled,

-What would be the effect on total fixed costs? Total variable costs?

- What would be the degree of operating leverage?

e) What sales volume is needed to earn an after-tax nest income of $13,028.40? how may cards must be sold?

Reference no: EM13484522

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