Rykiel Company sells radios. For the year its revenues and costs were: sales $550,000 (11,000…

Rykiel Company sells radios. For the year its revenues and costs were: sales $550,000 (11,000 units), variable costs $330,000, and fixed costs $150,000.

Instructions

(a) Compute the contribution margin per unit.

(b) Compute the contribution margin ratio.

(c) Compute the break-even point in dollars using the contribution margin ratio.

(d) Compute the break-even point in units using the unit contribution margin.

(e) Compute the number of units that must be sold to earn net income of $100,000.

(f) Compute the margin of safety ratio.