Exercise 4-14 Rhetorix, Inc. produces stereo speakers. The selling price per pai

Question

Exercise 4-14 Rhetorix, Inc. produces stereo speakers. The selling price per pair of speakers is $900. The variable cost of production is $300 and the fixed cost per month is $60,000. For November, the company expects to sell 125 pairs of speakers. Calculate expected profit.

Expected profit $
Calculate the contribution margin ratio, Breakeven sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Contribution margin ratio Breakeven sales $ Expected sales $ Margin of safety $ Rhetorix, Inc. produces stereo speakers. The selling price per pair of speakers is $900. The variable cost of production is $300 and the fixed cost per month is $60,000. For November, the company expects to sell 125 pairs of speakers. Rhetorix, Inc. produces stereo speakers. The selling price per pair of speakers is $900. The variable cost of production is $300 and the fixed cost per month is $60,000. For November, the company expects to sell 125 pairs of speakers. Calculate expected profit.

Expected profit $
Calculate expected profit.

Expected profit $ Calculate the contribution margin ratio, Breakeven sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Contribution margin ratio Breakeven sales $ Expected sales $ Margin of safety $ Calculate the contribution margin ratio, Breakeven sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Contribution margin ratio Breakeven sales $ Expected sales $ Margin of safety $ Exercise 4-14 Rhetorix, Inc. produces stereo speakers. The selling price per pair of speakers is $900. The variable cost of production is $300 and the fixed cost per month is $60,000. For November, the company expects to sell 125 pairs of speakers.

Explanation / Answer

Expected profit= (900*125)-(300*125)-60000=15000

Contribution margin ratio 900-300/900= 66.66%

Breakeven sales 0+60000/66.66%=90009

Margin of safety 112500-90009=22491

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