Bravo Baking identified the costs below to determine its cost of one unit of pro

Question

Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs.The units produced is 14,000. Table A Variable Fixed Materials used in baking bread 2.29 Factory Supervisor Salaries 0.12 Bakers Wages 2.29 Rent for Execitive offices 3000 Sales Commissions 3500 Utilities used in the factory 0.50 Advertising costs 1000 Delivery truck depreciation 400 Depreciation on bake ovens 0.07 Interest on bank loan 500 Total costs $5.27 $8400.00 Price Charged per unit $7.77 I need the solutions to the below questions by using the information in Table A Using the costs from Table A compute the below questions. A) Breakeven units (rounded to 2 decimal places) B) Break-even sales dollars C) Contribution Margin D) Contribution Margin Ratio (%) Part II Complete the following requirements A) If Bravo requires a profit of $5,000 how many units must it sell? B) What is the total revenue from A above? C) If Bravo actually sells 8,000 units 1) What is the margin of safety in Dollars 2) What is the margin of safety percentage? Please show your work, so I can understand it.

Explanation / Answer

Breakeven units (rounded to 2 decimal places)=3360.00


Break-even sales dollars=$26,107.20



Contribution Margin=$2.50

Contribution Margin Ratio =32%

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If Bravo requires a profit of $5,000 how many units must it sell?

5360.00

B) What is the total revenue from A above?$

41,647.20

C) If Bravo actually sells 8,000 units (Hint: Use Break Even $ from B Above)1) What is the margin of safety in Dollars?

$36,052.80

2) What is the margin of safety percentage? 58%

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