Mountain Press proauces textbooks for high school accounting courses. The company recently hired a new editor, Jan Green, to handle production and sales of books for an introductory accounting course. Jan's compensation depends on the gross margin associated with sales of this book. Jan needs to decide how many copies of the books to produce. The following information is available for the fall semester of 2017: Estimated sales 50,000 books O books $ 160 per book $ 100 per book $750,000 per semester The fixed-cost allocation rate is based on expected sales and is therefore equal to $750,000/50,000 books = $15 per book. Beginning inventory Average selling price Variable production costs Fixed production costs Jan has decided to produce either 50,000, 65,000, or 70,000 books.

Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given details below: Aactual sales for the product= 1,000,000 Break-even sales = 840,000.

Vala

Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects to sell 15,600 units and make operating income of $172,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

Mulhi

Calculate per-unit costs and compare to last year. Are the reduced unit costs for Product A due to scale or scope? Product A last year Product B last year Units Production Cost Marketing Cost 100 50 200 80 2.5 4 Units Production Cost Marketing Cost Product A coming year 150 150 40 Product B coming year 200 80 2 3.2 a. The reduced per unit costs for product A are due to scale b. The reduced per unit costs for product A are due to scope c. We cannot be certain whether the reduced per unit costs for product A are due to scale or scope. d. The reduced per unit costs for product A are due to both scale and scope