Answer:
2.
Unit contribution margin = price per unit-variable cost per unit
= $530 - 145
= $385
Ratio of margin of profit = profit margin / sales price
= 385 / 530
= 72.64%.
3.
Sales = 800 * 530 = 424,000
Variable costs = 800 * 145 = 116,000
Sales of 800 units 448,000
Variable costs of 800 units 116,000
Contribution margin 308,000
Fixed costs 147,400
Income from operations 184,600
4.
Break-even units = fixed costs / contribution margin per unit
= 147,400 / 385
= 382.85 units, rounded off to 383 units
Break-even sales revenue
= break-even units * sales price
= 383*530 = $ 202,990
5.
For profit of 80,000, contribution margin = fixed costs + profit
= 147,400 + 80,000 = 227,400
Target sales units = contribution margin / contribution margin per unit
= 227,400 / 385
= 590.64 units, rounded off to 591 units
