Canton Company Produces and Sells Toasters Required:
1)Compute the Budgeted Selling Price Per Unit Assuming Canton

Essay

Canton Company produces and sells toasters.The following unit cost information assumes a production and sales volume of 15,000 units:
$\begin{array}{lrr} \text { Direct materials} &\$9\\ \text { Direct labor } &6\\ \text { Variable overhead } &2\\ \text { Fixed overhead } &3\\ \text { Variable selling and administrative costs } &1\\ \text { Fixed selling and administrative costs } &4\\\end{array}$
Required:
1)Compute the budgeted selling price per unit assuming Canton uses a cost-plus pricing strategy and a markup equal to 75% of production cost.
2)Compute the firm's total fixed costs.
3)Compute the firm's contribution margin per unit given the budgeted selling price you computed in Requirement 1.
4)Compute the firm's break-even point in units and dollars,using the selling price you calculated in Requirement 1.
5)Using the unit contribution margin,compute the firm's estimated profit if 15,000 units are sold.