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T&H Manufacturing Company produces and a single product. Its current sales are $500,000. The company's...

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Accounting

T&H Manufacturing Company produces and a single product. Its current sales are $500,000. The company's accountant provided the following information:

Selling price per unit $40.00

Manufacturing costs $100,000 + 40% sales

Selling costs $30,000 + 10% sales

Administrative costs $45,000 + 10% sales

Required:

Compute the product's contribution margin ratio.

Compute the company's current net income.

Compute the product's break-even point in dollars and units.

Compute the amount of revenue necessary to earn $60,000 in profit.

Compute the unit contribution margin.

Compute the company's current margin of safety ratio.

Should the company accept a proposal that increases sales by 20% and total fixed costs by 25%?

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