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You had the following data extracted from the books and records of one of the industrial companies that produce and sell product (K), during the period ending June 30, 2015: Direct materials 06 $ per unit, direct fees 7 $per unit, Indirect industrial costs 4 $ per unit, The fixed industrial costs are 25,000 $, and the fixed marketing and administrative costs are 85,000 $. Number of units sold 8,000 units at a price of 37.5 $ per unit, and the sales commission is 2%. Get results by use accounts: Breakeven Point in Units = Fixed Costs Unit Contribution Margin Unit Contribution Margin = Selling Price per unit - Unit variable cost. Margin of Safety = Actual Sales - Breakeven Sales Margin of Safety Ratio = Margin of Safety Actual Sales Margin of Safety Ratio = Margin of Safety Actual Sales Required: 1- Preparing the income statement on the basis of the contribution margin. 2- Finding the number of units that achieve a tie. 3- Calculating the margin of safety and the margin of safety ratio. 4- If the company is planning to achieve a 40% safety margin, what is the sales value required to achieve this? 5- If the sales commission increased by 1%, what effect would that have on the break-even point?You had the following data extracted from the books and records of one of the industrial companies that produce and sell product (K), during the period ending June 30, 2015: Direct materials 06 $ per unit, direct fees 7 $per unit, Indirect industrial costs 4 $ per unit, The fixed industrial costs are 25,000 $, and the fixed marketing and administrative costs are 85,000 $. Number of units sold 8,000 units at a price of 37.5 $ per unit, and the sales commission is 2%. Get results by use accounts: Breakeven Point in Units = Fixed Costs Unit Contribution Margin Unit Contribution Margin = Selling Price per unit - Unit variable cost. Margin of Safety = Actual Sales - Breakeven Sales Margin of Safety Ratio = Margin of Safety Actual Sales Margin of Safety Ratio = Margin of Safety Actual Sales Required: 1- Preparing the income statement on the basis of the contribution margin. 2- Finding the number of units that achieve a tie. 3- Calculating the margin of safety and the margin of safety ratio. 4- If the company is planning to achieve a 40% safety margin, what is the sales value required to achieve this? 5- If the sales commission increased by 1%, what effect would that have on the break-even point?

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