Too Hot to Handle Company Produces Fireworks and Has Provided $\begin{array} { l } \text { Total fixed costs}&\$100,000 \\ \text { Unit variable costs}& \$6\\ \text {Planned unit sales}&30,000 \\\end{array}$

question 6

Essay

Too Hot To Handle Company produces fireworks and has provided the following information: $\begin{array} { l } \text { Total fixed costs}&\$100,000 \\ \text { Unit variable costs}& \$6\\ \text {Planned unit sales}&30,000 \\\end{array}$
The break- even point is 25,000 units. Required:
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.

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