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Austen Company manufactures and sells a single product. The company€™s sales and expenses for last year follow:
Austen Company manufactures and sells a single product. The company€™s
Requirements
1. Fill in the missing numbers in the table. Use the table to answer the following questions:
a. What is the total contribution margin?
b. What is the per unit contribution margin?
c. What is the operating income?
d. How many units were sold?
2. Answer the following questions about break-even analysis:
a. What is the quarterly break-even point in units?
b. What is the quarterly break-even point in sales dollars?
3. Answer the following questions about target profit analysis and safety margin:
a. How many units must the company sell in order to earn a profit of $53,000?
b. What is the margin of safety in units?
c. What is the margin of safety in sales dollars?
d. What is the margin of safety in percentage?
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