Cheetah Company manufactures custom-designed skins (covers) for iPods® and other portable electronic devices. Variable costs are $9.20 per custom skin, the price is $19, and fixed costs are $104,860. 1. What is the contribution margin for one custom skin?  2. How many custom skins must Cheetah Company sell to break even? 3. If Cheetah Company sells 13,000 custom skins, what is the operating income?  Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold.

Zebra Company manufactures custom-designed skins (covers) for iPods® and other portable MP3 devices. Variable costs are $14.00 per custom skin, the price is $20, and fixed costs are $120,600. Required: 1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. 2. How many custom skins must Zebra Company sell to break even? 3. If Zebra Company sells 21,000 custom skins, what is the operating income? 4. Calculate the margin of safety in units and in sales revenue if 21,000 custom skins are sold. Margin of safety in units   units Margin of safety in sales revenue $

Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of Safety Cheetah Company manufactures custom-designed skins (covers) for iPods® and other portable electronic devices. Variable costs are $9.20 per custom skin, the price is $19, and fixed costs are $104,860.

A company that sells radios has yearly fixed costs of $600,000. It costs the company $45 to produce each radio. Each radio will sell for $65. The company's costs and revenue are modeled by the following functions, where x represents the number of radios produced and sold: C(x) = 600,000 + 45x This function models the company's costs. R(x) = 65x. This function models the company's revenue. Find and interpret (R – C)(20,000), (R – C)(30,000), and (R - C)(40,000).

Bonita Industries sells MP3 players for $80 each. Variable costs are $50 per unit, and fixed costs total $120000. How many MP3 players must Bonita sell to earn net income of $300000? 4200. 4000. 14000. 6000.

Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $1.45 per switch. Vista’s CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows:     Machine A Machine B Annual fixed costs $ 108,900 $ 145,000 Variable cost per switch 0.46 0.20   Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 150,000 switches per year and what is the total cost of that alternative?

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24.  Calculate Juniper’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.   1. Calculate Juniper’s contribution margin per unit and contribution margin ratio. unit contribution margin   contribution marjin ratio     2. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.

It costs a coat manufacturer $8750 to make 125 coats and it costs $6500 to make 80 coats.  Each coat is sold for $350.     a. How much is the marginal cost? b. What is the slope of the Profit function, P(x)? c. How many coats must be sold in order to break even?

Gotcha Covered manufactures and sells leather cases for cell phones. Each case sells for $80. Variable manufacturing costs are $30 per case. We pay a sales commission of 10% of the selling price to our salespeople. Fixed manufacturing costs are $200,000 and fixed operating costs are $35,000. Calculate the following amounts: a. b. C. ii. iii. iv. V. Target quantity if we want to generate Operating Income = $100,000 Neatly draw a CVP Chart. Be sure to label everything relevant. We currently produce and sell 10,000 cases. i. What is our expected Operating Income? How much is our Margin of Safety in units and dollars? Prepare an Income Statement (through Oper Inc) using the GM format. Prepare an Income Statement (through Oper Inc) using the CM format. Our plant manager suggested we purchase a new machine which will lower our labor costs. This change will increase Fixed Costs by $30,000 and reduce Variable Cost per Unit by $5. Calculate the new Breakeven Quantity and new expected Operating…

Perry, Inc. manufactures metal stampings for automobiles: stick shifts and trim kits. Fixed costs are $146,000. Each stick shift sells for $10 and has variable costs of $8; each trim kit sells for $9 and has variable costs of $5. What are the contribution margins per unit and contribution ratios for door handles and trim kits?  If Perry sells 30,000 stick shifts and 45,000 trim kits, what is operating income? How many stick shifts and trim kits must be sold for Perry to break even?