Furniture, Inc., sells lamps for $30. The unit variable cost per lamp is $22. Fixed costs total $9,600.
Required:
a.What is the contribution margin per lamp?
b.What is the breakeven point in lamps?
c.How many lamps must be sold to earn a pretax income of $8,000?
d.What is the margin of safety, assuming 1,500 lamps are sold?

Question

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The Answer of Furniture, Inc., sells lamps for $30. The unit variable cost per lamp is $22. Fixed costs total $9,600.
Required:
a.What is the contribution margin per lamp?
b.What is the breakeven point in lamps?
c.How many lamps must be sold to earn a pretax income of $8,000?
d.What is the margin of safety, assuming 1,500 lamps are sold?