Managerial Accounting- 3 page paper

Questions:

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1. From all original estimates given, prepare estimated contribution margins by product line for the next fiscal quarter. Also, show the contribution margins per unit.

 

2. Prepare contribution margins as in part (1) with all revisions included.

 

3. For the original estimates, compute each of the following:

 

a. Break-even point for the given sales mix.

 

b. Margin of safety for the estimated sales volume.

 

4. For the revised estimates, compute each of the following:

 

a. Break-even point for the given sales mix.

 

b. Margin of safety for the estimated sales volume.

 

5. Comment on Herbert’s concern about the variable cost of the place mats.