Question

Happy Toss Co. produces sports socks. The company has fixed costs of $91,000 and variable costs of S0.81 per package. Each package sells for $1.80. Requirements Compule the contribution margin per package and the contribution margin ralio. (Round your answers to Iwo decimal places.) 2. Find the breakeven point in units and in dollars, using the contribution margin approach. 1. Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by selecting the labels and entering the amounts to compute the contribution margin per package. (Round al amounts to two decimal places. Abbreviation used: CM = contribution margin.) CM per unit Non select the labels and enter the amounts to calculate the contribution margin ratio. (Enter amounts in the formula to two decimal places. Enter the contribution margin ratio as a whole percentage X%. Abbreviation used: CM = contribution margin.) CM ratio 1 = Requirement 2. Find the breakeven point in units and in collars, using the contribution margin approach. Begin by selecting the labels and entering the amounts to find the breakeven point in units, using the contribution margin approach. (Enter amounts in the formula to two decimal places. Enter a "O" for any zero amounts. Abbreviation used: CM = contribution margin.) = Required sales in units 11 Now find the breakeven point in dollars using the contribution margin approach. Begin selecting the formula, and in the next step, enter the amounts and calculate breakeven point in dollars. (Enter a "O" for any zero amounts.) Required sales in dollars

Answer 1

Statementshowing Computations
Paticulars	Amount
Sales price per unit	1.80
Variable cost per unit	(0.81)
Contribution per unit	0.99
Less Fixed expenses	91,080.00
Requirement 1
Selling price per unit - Variable cost per unit =	CM per unit
1.80 - .81	0.99
Contribution margin per unit/ selling price per unit =	CM Ratio
.99/1.80	55.00%
Requirement 2
(Fixed costs + Operating profit)/Contribution margin per unit =	Required sales in units
(91080 + 0)/.99	92,000.00
(Fixed costs + Operating profit)/Contribution margin ratio =	Required sales in dollar
(91080 + 0)/55%	165,600.00