A company sells a product for $64. Variable costs are 60% of sales, and monthly fixed costs are $58,368. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $131,584? c. Assuming the company achieves the level of sales required in part b, what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units. < Required A Required B >
A company sells a product for $64. Variable costs are 60% of sales, and monthly fixed costs are $58,368. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $131,584? c. Assuming the company achieves the level of sales required in part b, what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units. < Required A Required B >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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