Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating 173 $4 83 costs $576,000 Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $180,000. d. Determine the margin of safety in units, sales dollars, and as a percentage.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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### Information about Ender Company's Product

**Details Provided:**

- **Sales price per unit:** $173
- **Variable cost per unit:** $83
- **Total annual fixed manufacturing and operating costs:** $576,000

---

### Required Calculations

Determine the following:

a. **Contribution margin per unit.**

b. **Number of units required to break even.**

c. **Sales level in units needed to achieve a profit of $180,000.**

d. **Margin of safety in units, sales dollars, and as a percentage.**

---

### Instructions:

- **Complete this question by entering answers in the tabs below.**
- Input the margin of safety in units, sales dollars, and as a percentage. (Round the percentage to 1 decimal place, e.g., 0.234 should be entered as 23.4.)

**Tabs for Input:**

- **Units**
- **Sales**
- **Percentage**

There are fields for answering "Req A to C" and "Req D" with navigation buttons to move between questions (prev/next).
Transcribed Image Text:### Information about Ender Company's Product **Details Provided:** - **Sales price per unit:** $173 - **Variable cost per unit:** $83 - **Total annual fixed manufacturing and operating costs:** $576,000 --- ### Required Calculations Determine the following: a. **Contribution margin per unit.** b. **Number of units required to break even.** c. **Sales level in units needed to achieve a profit of $180,000.** d. **Margin of safety in units, sales dollars, and as a percentage.** --- ### Instructions: - **Complete this question by entering answers in the tabs below.** - Input the margin of safety in units, sales dollars, and as a percentage. (Round the percentage to 1 decimal place, e.g., 0.234 should be entered as 23.4.) **Tabs for Input:** - **Units** - **Sales** - **Percentage** There are fields for answering "Req A to C" and "Req D" with navigation buttons to move between questions (prev/next).
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