Hawver Corporation produces and sells a single product. Data concerning that product appear below:
Selling price per unit
Variable expense per unit
Fixed expense per month
Required:
$ 180
$ 81
$ 594,000
a. What is the contribution margin per unit?
b. Calculate the Contribution Margin ratio.
C. Calculate the Variable expense ratio.
d. What is the break-even point in unit sales?
e. What is the break-even point in total dollar sales?
f. If the company's monthly target profit is $19,800, determine the unit sales to attain that target profit.
g. If the company's monthly target profit is $19,800, determine the dollar sales to attain that target profit.
h. Calculate the margin of safety in dollars when target profit is $19,800.
i. Calculate the margin of safety percentage when target profit is $19,800.