Cost Accounting: Information below is for the production and sale of 5,000 units for this year. The

Information below is for the production and sale of 5,000 units for this year. The sales price is $300 per unit.
Sales
Variable costs
$ 1,500,000
$285,000
Metal for casing
Wages of assembly workers
Stands for units
Fixed costs
Taxes on factory
Factory maintenance
Factory machinery depreciation
Administrative salaries
440,000 175,000
$ 9,000
18,000
78,000
135,000
1. Compute contribution margin per unit and contribution margin ratio.
Contribution margin per unit
Contribution margin ratio
%
2. Compute the break-even points in units and in sales dollars.
Break-even in units
units
Break-even in sales dollars
3. Compute the margin of safety in dollars and in percent.
Margin of safety in dollars
Margin of safety (%)
%

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