Dolce company is planning to sell 400000 hammers for

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11. Dolce Company is planning to sell 400,000 hammers for $1.50 per unit. The contribution margin ratio is 20%. If Dolce will break even at this level of sales, what are the fixed costs? a. $120,000 b. $280,000 c. $400,000 d.$480,000 12. Moschino Company sells compact disk players for $60 each. Variable costs are $40 per unit, and fixed costs total $30,000. How many compact disk players must Moschino sell to earn net income of $70,000? 13. Gaultier Company had actual sales of $800,000 when break-even sales were $600,000. What is the margin of safety ratio? 14. Buerhrle’s CVP income statement included sales of 2,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $44,000. Contribution margin is: 15. Vazquez Company’s cost of goods sold is $350,000 variable and $200,000 fixed. The company’s selling and administrative expenses are $250,000 variable and $300,000 fixed. If the company’s sales are $1,400,000, what is its contribution margin? a. $300,000
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b. $800,000 c. $850,000 d. $900,000
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