Futaba photo shop has three services, print, enlargement, frame. The shop owner thinks these two services...

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Accounting

Futaba photo shop has three services, print, enlargement, frame.The shop owner thinks these two services can be sold as a bundle,Print 3, Enlarge 4 and Frame 1. The company spends 10% of sellingprice as variable advertising expenses. Fixed cost for the shop is$129,320. The following information related to these three servicesis given.
Print
Enlarge
Frame
Selling price
0.8
1.2
4.5
Direct material and labor costs per unit
0.17
0.31
1.8
Variable manufacturing costs
0.10
0.22
0.5
Expected sales units
45,000
60,000
15,000
Determine the contribution margin perunit of each product
Compute the breakeven point volume foreach service. Present supporting calculations
What is the total sales units requiredto earn profit of $252,000 on after tax, the above assumption and atax rate of 40%?

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Computation of contribution margin per unit of each product Print Enlarge Frame Selling price 08 12 45 direct material and labour costs 017 031 18 variable manufacturing costs 010 022 05 variable advertisement expenses 008 0810 012 1210 045 4510 Contribution margin per unit 045 055 175 Contribution margin per unit is the difference between the selling price and See Answer

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	Print	Enlarge	Frame
Selling price	0.8	1.2	4.5
Direct material and labor costs per unit	0.17	0.31	1.8
Variable manufacturing costs	0.10	0.22	0.5
Expected sales units	45,000	60,000	15,000