M company is a manufactory which produces toys.Th

M company is a manufactory which produces toys.The budgeted production and sales of the company are both expected to be 200 units in the coming year, the budgeted selling price is $ 370 per unit. The following information mimes to the costs of producing 200 toys:

Per unit ($) Total ($)

Direct material costs 1 50 30 000

Direct labor costs 80 1 6 000

Variable production overheads 50 10 000

Variable selling and administration overheads 30 6 000

Fixed production overheads 6 000

Fixed selling and administration overheads 3 000

Requirement：

A.Calculate the total contribution margin.

B.Calculate the amounts of profit at the budgeted level of production.

C.Calculate the break - even point in units and the margin of safety.

D.If M company desires a profit of$4 800, calculate the number of units that it must produce and sell.

A.Total contribution margin=370*200 - (150 +80 +50 +30) *200 =12 000

B.The amounts of profit at the budgeted level of production=12 000 -(6 000 +3 000) =3 000

C.Break - even point in units= (6 000 +3 000)/(3 70 - 310) =150

The marsin of safety= (200 - 150) *370 =18 500

D.4 800= (370 - 310) *Q-9 000

The number of units = (4 800 +9 000)/ (370 -310) =230