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

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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1E

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