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185.     Too Hot To Handle Company produces fireworks and has provided the following information:

               Total fixed costs      $100,000
               Unit variable costs      $6
               Planned unit sales      30,000

     The break even point is 25,000 units.


     a.     Compute the selling price per unit.

     b.     Compute the contribution margin ratio.

     c.     Compute the break even volume in dollars.

     d.     Compute the margin of safety.


186.     The Yetmar Family Restaurant is open 24 hours per day serving breakfast, lunch, and dinner. Fixed costs are $24,000 per month. Variable costs are estimated at $9.60 per meal. The average total bill (excluding tax and tip) is $12 per customer.          


     a.      Compute the number of meals that must be served if the Family Restaurant wishes to earn a profit before taxes of $6,000.

     b.     Compute the break even point in meals.

     c.     Compute the break even volume in dollars.

     d.     Assume that fixed costs increase to $30,000. How many additional meals must be served if the Yetmar Family Restaurant wishes to earn the same before-tax profit?


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