16.

Sales in units 400,000

Multiply by selling price 1.25
Sales in dollars 500,000
Multiply by contribution margin ratio 24%
Contribution margin in dollars 120,000

20. Fixed costs 200,000

Target net income 20,000
Target contribution margin in dollars 220,000
Divide by contribution margin ratio (100%-60%) 40%
Target sales 550,000

22. Sales 512,000

Less variable costs 376,000
Contribution margin 136,000
Divide by sales 512,000
Contribution margin ratio 27%

23. Fixed costs 99,840

Divide by contribution margin per unit 16
Breakeven point in units 6240

24 Month Miles Cost

High April 90,000 130,000
Less Low February 50,000 80,000
Difference 40,000 50,000
Divide by difference in miles 40,000
Unit variable cost 1.25

26 February cost 80000

Less variable cost
February miles 50,000
Multiply by unit variable cost 1.25 62,500
Fixed cost 17,500

27. Sales 600,000

Less Variable expenses 360,000
Contribution margin 240,000
Less Fixed expenses 150,000
Net income 90,000

29. Actual sales (4,000 units x P42) 168,000

Less: Break even sales
Fixed expenses 42,000
Divide by contribution margin ratio
Selling price per unit 42
Less: variable expenses 14
 Contribution margin 28
Divide by selling price per unit 42 66.67% 63,000
Difference between actual sales and breakeven sales 105,000
Divide by actual sales 168,000
Margin of safety 62.5%

30. Contribution margin per unit 11.00

Divide by contribution margin ratio 56%
Selling price 19.64

32. Fixed costs 120,000

Divide by contribution margin ratio 20%
Breakeven sales 600,000
33. Machine Power
Month Hours Costs
High November 8,000 13,000
Less low April 2,400 6,400
Difference 5,600 6,600
Divide by difference in machine hours 5,600
Unit variable cost 1.18

34 APR NOV
Costs 6400 13000

Machine hours 2,400 8,000

Multiply by unit variable cost 1.18 1.18
2,832 9,440

Fixed costs 3,568 3,560

38. Variable costs 48,000

Add: Fixed costs 26,000
Breakeven sales 74,000
Divide by number of units 3,500
Breakeven point in unit price 21.14

39. Actual sales 760,000

Less: Breakeven sales 430,000
Difference 330,000
Multiply by actual sales 760,000
Margin of safety ratio 43%

42. Contribution margin 530,000

Divide by contribution margin ratio 34%
Breakeven sales 1,558,824
Less: Contribution margin ration 530,000
Variable costs 1,028,824