# Required : 1 . Compute the expected total variable cost per bottle and the expected contribution margin ratio. Total variable cost Contribution…

Draaksh Corporation sells premium quality wine for \$85 per bottle. Its direct materials and direct labour costs are \$16 and \$9.50 respectively per bottle. It pays its direct labour employees a wage of \$19 per hour.
The company performed a regression analysis using the past 12 months’ data and established the following monthly cost equation for manufacturing overhead costs using direct labour hours as the overhead allocation base:
y = \$151,700 + \$20.00x
Draaksh budgeted an amount of \$33,400 per month for sales promotions; additionally, it has decided to offer a sales commission of \$4.50 per bottle to its sales personnel. Administrative expenses are expected to be \$24,700 per month.
Required :&quot;1 . Compute the expected total variable cost per bottle and the expected contribution margin ratio.Total variable costContribution margin ratio%02. Compute the annual break- even sales in units and dollars . ( Round your intermediate and finalanswers to the whole number . )Annual breakeven sales in unitsAnnual breakeven sales in dollars3 . Draaksh has budgeted sales of \$8 . 2 million for the next fiscal year . What is the company’s margin ofsafety in dollars and as a percentage of budgeted sales ? ( Round your intermediate and final answersto the whole number . )Margin of safetyBudgeted sales

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.