In: Accounting
Office Furniture Systems, Inc. sells chairs for $150. The unit variable cost per unit is $65. Fixed costs total $18,700.
Required:
a. What is the contribution margin per unit?
b. What is the breakeven point in units?
c. How many units must be sold to earn a pretax income of $45,000?
d. What is the margin of safety, assuming 700 units are sold?