Question

Units manufactured	100
Direct materials (in $)
Total cost for your direct material number 1		$ 21,066
Total cost for your direct material number 2		$ 12,640
Total cost for your direct material number 3		$ 8,426
Total direct materials (in $)			$ 42,132
Direct labor (in $)			$ 26,066
Variable factory overhead (in $)
Total cost for your F/O number 1		$ 42,132
Total cost for your F/O number 2		$ 31,066
Total factory overhead (in $)			$ 73,198
Cost of goods manufactured			$ 141,396
(no Beg or End D/M or WIP inventories)
Sales price per unit	$ 3,009
Units sold	100
Total sales in $		$ 300,900
Fixed cost		$ 25,000

1. What is your product's operating income?

2. What is your product's contribution margin per unit?

3. What is your product's contribution margin percent?

4. How many units would have to be sold to break even?

5. How many units would have to be sold to yield a target operating income of $30,000?

6. Using your operating income (from question 1) what is your product's planned net income assuming a tax rate of 30%

(can work be shown)

Answer 1

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