A company has the following information: Unit sales 13,400 Sales price per unit $...

A company has the following information:

Unit sales 13,400

Sales price per unit $ 90.00

Variable costs per unit $ 40.00

Fixed costs $ 500,000

A. What is the company’s contribution margin per unit? B. What is the company’s total contribution margin? C. What is the company’s operating income? D. What is the company’s margin of safety in units? E. If the company had a target operating income of $636,000, what would be the target sales in dollars? F. The company is considering an advertising campaign at a cost of $85,310. How many additional units would the company need to sell to cover the cost of the campaign? G. If the advertising campaign in #2F above would increase sales by an estimated 1,880 units, how much would the company’s income increase or decrease?

Expert Solution

ekkarill92 answered 1 year ago

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