MGAB03H3 Study Guide - Midterm Guide: Junior Achievement, Operating Leverage, Contribution Margin
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You are the advisor of a junior achievement group in a local high school. You need to help the group make a decision about fees that must be paid to sell gardening tools at the home and garden show. The group sells a set of tools for . 00. The manufacturing cost (all variable) is per set. Vines and daughter manufactures and sells swimsuits for each. The estimated income statement for 2012 is as follows: Explain: compute the contribution margin ratio and the breakeven point in revenues, what is the margin of safety in revenues, suppose next year"s revenue estimate is ,000 higher. What would be the estimated pretax earnings: assume a tax rate of 30%. 3. 41 sales mix, multiple-product breakeven, business risk, quality of information. Keener produces two products: regular boomerangs and premium boomerangs. Last month 1,200 units of regular and 2,400 units of premium were produced and sold.
