The Blossom Company sells sports decals that can be personalized with a player's name, a team name, and a jersey number for

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The Blossom Company sells sports decals that can be personalized with a players name, a team name, and a jersey number for $8.00 each. Blossom buys the decals from a supplier for $2.60 each and spends an additional $0.50 in variable operating costs per decal. The results of last months operations are as follows: Sales revenue Cost of goods sold Gross profit Operating expenses Operating income $15,300 $28,000 9,100 18,900 3,600 Calculate contribution margin per unit. (Round answer to 2 decimal places, e.g. 0.38.) Contribution margin per unit $ per unit LINK TO TEXT LINK TO VIDEO What is Blossoms monthly breakeven point in units? In dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 25,000.) Breakeven point Breakeven sales $ units LINK TO TEXT LINK TO VIDEO What is Blossoms margin of safety? (Round answers to O decimal places, e.g. 25,000.) Margin of safety Margin of safety $ units

The Blossom Company sells sports decals that can be personalized with a player’s name, a team name, and a jersey number for $8.00 each. Blossom buys the decals from a supplier for $2.60 each and spends an additional $0.50 in variable operating costs per decal. The results of last month’s operations are as follows: Calculate contribution margin per unit. (Round answer to 2 decimal places, e.g. 0.38.) Contribution margin per unit $ per unit What is Blossom’s monthly breakeven point in units? In dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 25,000.) Breakeven point units Breakeven sales $ What is Blossom’s margin of safety? (Round answers to 0 decimal places, e.g. 25,000.) Margin of safety units Margin of safety $

Expert Answer

 

Breakeven point=Fixed cost/contribution margin per unit

=$3,600-(28000*0.5/8)/$4.9

=378

Breakeven point in dollars=378*$8

=$3,024

Margin of safety units=(28000/8)-378

=3122

Margin of safety =$28000-$3024

=$24,976

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