"You Rang?" manufactures and sells boomerangs. The company's contribution format income statement for the month of Septe

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You Rang Manufactures And Sells Boomerangs The Company S Contribution Format Income Statement For The Month Of Septe 1 (52.84 KiB) Viewed 9 times

"You Rang?" manufactures and sells boomerangs. The company's contribution format income statement for the month of September is given below. The company is looking to make a profit of $7000 for the month. Sales (800 units) Less Variable Expenses Contribution Margin Less Fixed Expenses Operating Income Total Per Unit $16,000 $20.00 $9,600 $12.00 $6,400 $8.00 $3,400 $3,000 Compute the following: 1. The Contribution Margin Ratio for "You Rang?" - 1 Mark 2. The company's break-even point in both units and sales dollars. - 3 Marks 3. The Target Operating Profit for "You Rang?" in both units and sales dollars. - 3 Marks 4. The company's Margin of Safety expressed in units, sales dollars, and as a percentage. - 3 Marks round your final answers to 2 decimal points correctly.