Question

In: Accounting

Office Furniture Systems, Inc. sells chairs for $150. The unit variable cost per unit is $65....

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?

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