3 Albright Videos, a videotape shop, purchases tapes at $8 each and sells them for...
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Accounting
3 Albright Videos, a videotape shop, purchases tapes at $8 each and sells them for $14. Variable selling cost is $1 per tape and fixed costs total $24,000 annually. Required (a) Contribution margin per tape is $____________. (b) The contribution margin percentage is ________%. (c) If Albright sells 6,500 tapes, its profit is $_____________. (d) The break-even point in units is __________ tapes. (e) To earn a profit of $32,000, Albright must sell ________ tapes. (f) To earn a return on sales of 10%, Albright must sell _________ tapes. (g) If Jolene, Albright's owner, wants a profit of $26,000 and believes sales will be 8,000 tapes, the per-tape selling price must be $___________. (h) If Albright sells 5,000 tapes, its margin of safety in units is and in dollars is $
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