1000 units 91 per unit change in total contribution

1,000 units × $91 per unit
Change in total contribution margin and in net operating income
Because fixed
expenses are not
affected by this
change, the change
in net operating
income will be
equal to the change
in total contribution
margin.
16)
Selling price per unit
Variable expense per unit
Contribution margin per unit and contribution margin ratio
Dollar sales to break
even = Fixed
expenses ÷
Contribution margin
ratio = $153,216 ÷
0.56 = $273,600
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17)
Selling price per unit
Variable expense per unit
Contribution margin per unit and contribution margin ratio
Unit sales to break even = Fixed expenses ÷
Unit contribution margin = $372,960 ÷ $168
per unit = 2,220 unitsDollar sales to break
even = Fixed expenses ÷ Contribution margin
ratio = $372,960 ÷ 0.70 = $532,800
18)
Selling price per unit
Variable expense per unit
Contribution margin per unit and contribution margin ratio
Unit sales to break even = Fixed expenses ÷
Unit contribution margin = $138,720 ÷ $86.70
per unit = 1,600 unitsDollar sales to break
even = Fixed expenses ÷ Contribution margin
ratio = $138,720 ÷ 0.51 = $272,000
19)
Selling price per unit
Variable expense per unit
Contribution margin per unit
Unit sales to break even = Fixed expenses ÷
Unit contribution margin= $670,480 ÷ $136
per unit = 4,930 units
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20)
Selling price per unit
Variable expense per unit
Contribution margin per unit
Unit sales to break even = Fixed expenses ÷
Unit contribution margin= $223,587 ÷ $81.90
per unit = 2,730 units
21)
Selling price per unit
Variable expense per unit
Contribution margin per unit and contribution margin ratio
Dollar sales to break
even = Fixed
expenses ÷
Contribution margin
ratio = $249,480 ÷
0.77 = $324,000
22)
Selling price per unit
Variable expense per unit
Contribution margin per unit and contribution margin ratio
a.Unit sales to attain target profit = (Target
profit + Fixed expenses) ÷ Unit contribution
margin= ($518,650 + $12,650) ÷ $126.50 per
unit = 4,200 unitsb.Dollar sales to attain target
profit = (Target profit + Fixed expenses) ÷
Contribution margin ratio= ($518,650 +
$63,250) ÷ 0.55 = $1,058,000
23) Dollar sales to attain target profit = (Target profit + Fixed
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expenses) ÷ Contribution margin ratio=
($585,000 + $11,250) ÷ 0.75 = $795,000
24)
Selling price per unit
Variable expense per unit
Contribution margin per unit and contribution margin ratio
a.Unit sales to attain target profit = (Target
profit + Fixed expenses) ÷ Unit contribution
margin= ($381,300 + $9,300) ÷ $93.00 per
unit = 4,200 unitsb. Dollar sales to attain
target profit = (Target profit + Fixed expenses)
÷ Contribution margin ratio= ($381,300 +
$18,600) ÷ 0.62 = $645,000
25) Dollar sales to attain target profit = (Target
profit + Fixed expenses) ÷ Contribution
margin ratio= ($561,600 + $34,560) ÷ 0.54 =
$1,104,000
26)
Selling price per unit
Variable expense per unit
Contribution margin per unit
Unit sales to attain target profit = (Target
profit + Fixed expenses) ÷ Unit contribution
margin= ($594,000 + $19,800) ÷ $99.00 per
unit = 6,200 units
27)
Selling price per unit Variable expense per unit
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Contribution margin per unit
Unit sales to attain target profit = (Target
profit + Fixed expenses) ÷ Unit contribution
margin= ($483,480 + $56,880) ÷ $142.20 per
unit = 3,800 units
28)
Sales (at the current volume of 35,600 units) (a)
Break-even sales (at 29,192 units)
Margin of safety (in dollars) (b)
Margin of safety percentage, (b
29)
Sales (at the current volume of 37,300 units) (a)
Break-even sales (at 26,483 units)
Margin of safety (in dollars) (b)
Margin of safety percentage, (b
30)
Sales (at the current volume of 36,900 units) (a)
Break-even sales (at 32,103 units)
Margin of safety (in dollars) (b)
Margin of safety percentage, (b) ÷ (a)
31) a.Degree of operating leverage =
Contribution margin ÷ Net operating income=
$269,500 ÷ $27,800 = 9.69b.Percent increase
in net operating income = Percent increase in