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Mariah Corporation has provided the following contribution format income statement. Assume any solution is within the relevant range.

Mariah Corporation has provided the following contribution format income statement. Assume any solution is within the relevant range.

 

Sales (3,000 units)

$150,000
 

Variable expenses

90,000
 

Contribution margin

60,000
 

Fixed expenses

48,000
 

Net operating income

$12,000

Required:

How much is the contribution margin per unit? Estimate how many units must be sold to achieve a target profit of $54,000.

At the target profit of $54,000, what is the margin of safety in dollars?

If the tax rate is 25%, how many units must be sold to achieve a target profit of $75,000?

 

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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