M company is a manufactory which produces toys.The budgeted production and sales of the company are both expected to be 200 units in the coming year,the budgemd selling price is$370 per unit.The following information mimes to the costs of producin9 200 to

题目

M company is a manufactory which produces toys.The budgeted production and sales of the company are both expected to be 200 units in the coming year,the budgemd selling price is$370 per unit.The following information mimes to the costs of producin9 200 toys:

Per unit($)

Total($)

Direct material costs

l 50

30 000

Direct labor costs

80

1 6 000

Variable production overheads

50

1 0 000

Variable selling and administration overheads

30

6 000

Fixed production overheads

6 000

Fixed selling and administration overheads

3 000

Requirement:

A.Calculate the total contribution margin.

B.Calculate the amounts of profit at the budgeted level of production.

C.Calculate the break-even point in units and the margin of safety.

D.If M company desires a profit of$4 800,calculate the number of units that it must produce and sell.


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