M company is a manufactory which produces toys.The budgeted production and sales

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 budgemd selling price is$370 per unit．The following information mimes to the costs of producin9 200 toys：

Per unit(＄)

Total(＄)

Direct material costs

l 50

30 000

Direct labor costs

80

1 6 000

Variable production overheads

50

1 0 000

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=370×200-310×200　　=12000　　B.The amounts of profit at the budgeted level of production=12000-(6000+3000)=3000　　C.Break-even point in units=(6000+3000)/(370-310)=150　　The margin of safety=200-150=50　　D.