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Author Question: Bart's Bike Shop has the following income statement.Sales ($150 per unit)$150,000Less Cost of Goods ... (Read 37 times)

booty5

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Bart's Bike Shop has the following income statement.

Sales ($150 per unit)$150,000
Less Cost of Goods sold ($96 per unit)    96,000
Gross margin54,000
Less Operating costs
  Salaries$24,000
  Advertising12,000
  Shipping ($6 per unit)    6,000   42,000
Operating income$  12,000

Required:

a.Calculate the contribution margin per unit.
b.Calculate the contribution margin ratio.
c.Calculate the break-even point in units. In sales dollars.
d.Calculate the margin of safety in units. In dollars.


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Marked as best answer by booty5 on Feb 5, 2023

brunoanthony

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booty5

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Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it


nyrave

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Reply 3 on: Yesterday
:D TYSM

 

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