Question:
(Miscellaneous) Compute the answers to each of the following independentsituations.
a. SmallCo sells two products, M and N. The sales mix of these products is 2:4, respectively. M has a contribution margin of $10 per unit, and N has a contribution margin of $5 per unit. Fixed costs for the company are $90,000. What would be the total units of N sold at the break-even point?
b. Brooke Company has a break-even point of 2,000 units. At breakeven, variable costs are $3,200 and fixed costs are $800. If the company sells one unit over breakeven, what will be the pretax income of the company?
c. Cool Cologne sells its product for $5 per bottle. The fixed costs of the company are $108,000. Variable costs amount to 40 percent of selling price What amount of sales (in units) would be necessary for Cool Cologne to earn a 25 percent pretax profiton sales?
d. Johnston Company has a break-even point of 1,400 units. The company is currently selling 1,600 units for $65 each. What is the margin of safety for the company in units, sales dollars, and percentage?