A service company incurred the following sales and costs: Sales
|
Sales
|
$760,000
|
|
Fixed administrative costs
|
$116,000
|
|
Fixed selling costs
|
$84,000
|
|
Depreciation
|
$20,000
|
|
Salaries
|
$165,000
|
|
Selling costs that change as sales change
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$28,000
|
|
Variable cost of providing services
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$262,000
|
|
Services provided
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8,000 units
|
Compute the following:
Contribution margin per unit Blank 1
Contribution margin ratio Blank 2
Break even in units Blank 3
Break even in sales dollars Blank 4
Units that must be sold to have before tax profit of $500,000 Blank 5
Required sales dollars to achieve a before tax profit of $500,000 Blank 6
Margin of safety in units Blank 7 and margin of safety in dollars Blank 8
Contribution margin Blank 9 , Income Blank 10 , and Operating leverage Blank 11 Percent (%) income will increase if sales increase 20% Blank 12 Income if sales go up 20% Blank 13