a. 50 cents
Contribution margin per unit is price per unit- variable cost per unit
1.75 - ($50,000/40,000 units)
1.75 - 1.25 = $ .50
b. $8750
Margin of safety is the expected sales - break even sales
(45,000 units * $1.75 per unit) - (40,000 *1.75)
78,750 - 70,000 = $8750
Apply for it and be a lucky man to live
Answer:
$2,266,123.60
Explanation:
As it is given
Return on sales = Net income ÷ Sales
3.56% = $110,000 ÷ Sales
So, the sales is $3,089,887.64
Now the Gross Profit percentage is
Gross Profit percentage = Gross profit ÷ Sales
26.66% = Gross profit ÷ $3,089,887.64
So, the gross profit
= $823,764.044
Now the cost of goods sold is
= Sales - gross profit
= $3,089,887.64 - $823,764.044
= $2,266,123.60
Answer:
Each of the following are types of Overheads allocation methods.
Explanation:
Factory overheads such as rent, electricity or water can not be traced directly to a cost object.
When determining the cost of a cost object these overheads are apportioned to departments they pass through for processing or the actual job using an allocation method.
The common methods for allocating overheads are plant-wide rate method, departmental overhead rate method and activity-based costing method.
