Rykiel Company sells radios. For the year its revenues and costs were: sales $550,000 (11,000 units), variable costs $330,000, and fixed costs $150,000.
Instructions
(a) Compute the contribution margin per unit.
(b) Compute the contribution margin ratio.
(c) Compute the break-even point in dollars using the contribution margin ratio.
(d) Compute the break-even point in units using the unit contribution margin.
(e) Compute the number of units that must be sold to earn net income of $100,000.
(f) Compute the margin of safety ratio.
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