12.4 analysis    CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000.   Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.Required:Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter7: Cost-volume-profit Analysis
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12.4 analysis 

 

CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000.

 

Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.
Required:
Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.

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