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1. Lowman Corporation sells only one product with a selling price of RM200 and a variable cost of RM80 per unit. The company's monthly fixed expense is RM60,000. The corporation would like to achieve a profit of RM30,000 next year. Required: Determine the units to be sold and sales dollars necessary to achieve the target profit. 2. Sanchez Co. sells two models of doghouses, the Puppy Palace and the Canine Castle. Sanchez has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Puppy Palaces. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Sanchez's estimated annual fixed costs? c) What is the sales mix? d) Prepare a product line income statement with operating income of RM400,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volum 1 3. Bridal Shoppe sells wedding dresses. The cost of each dress is comprised of the following: Selling price of RM1,000 and variable (flexible) costs of RM400. Total fixed (capacity-related) costs for Bridal Shoppe are RM90,000. a. What is the contribution margin per dress? b. What is the Bridal Shoppe's total profit when 200 dresses are sold? c. How many dresses must Bridal Shoppe sell to reach the breakeven point? d. How many dresses must Bridal Shoppe sell to yield a profit of RM60,000

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