1. Randy's tireland makes a product that sells for $68 per unit and has $47 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement?
2. Ritz Furniture has a contribution margin ratio of 0.16. If fixed costs are $176,600, how many dollars of revenue must the company generate in order to reach the break-even point?
3. U.S. Telephone Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10% (based on the unit sales price per phone). Fixed manufacturing costs total $1,160 per month, while fixed selling and administrative costs total $2,350. How many phones must be sold to achieve the breakeven point?
4. Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $86,800. Swimkids expects sales of $284,400 next year. What is Swimkids's margin of safety (in dollars)?
5. Lambardi Company sells 3 types of bags. Bag A sells for $19 and has variable cost of $9.00 per unit. Bag B sells for $15 and has variable cost of $12.00 per unit. Bag C sells for $9 and has variable costs of $6.00 per unit. Lambardi sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Lambardi?