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Author Question: Furniture, Inc., sells lamps for $30. The unit variable cost per lamp is $22. Fixed costs total ... (Read 193 times)

Zulu123

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Question 1

The selling price per unit is $25, variable cost per unit $15, and fixed cost per unit is $4 when sales are 10,000 units. If one more unit is sold, operating income will increase by $6.
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Question 2

Furniture, Inc., sells lamps for $30. The unit variable cost per lamp is $22. Fixed costs total $9,600.

Required:
a.What is the contribution margin per lamp?
b.What is the breakeven point in lamps?
c.How many lamps must be sold to earn a pretax income of $8,000?
d.What is the margin of safety, assuming 1,500 lamps are sold? 


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Marked as best answer by Zulu123 on Mar 6, 2021

cici

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Zulu123

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Reply 2 on: Mar 6, 2021
Wow, this really help


Dinolord

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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