Coors Company expects sales of $504,000 (5,600 units at $90 per unit). The company's total fixed costs are $138,000 and its variable costs are $60 per unit. Compute (a) break-even in units and (b) the margin of safety in dollars. (a) Break-even point in units (b) Margin of safety

Coors Company expects sales of $504,000 (5,600 units at $90 per unit). The company's total fixed costs are $138,000 and its variable costs are $60 per unit. Compute (a) break-even in units and (b) the margin of safety in dollars. (a) Break-even point in units (b) Margin of safety

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

Coors Company expects sales of $504,000 (5,600 units at $90 per unit). The company's total fixed costs are $138,000 and its variable
costs are $60 per unit. Compute (a) break-even in units and (b) the margin of safety in dollars.
(a) Break-even point in units
(b) Margin of safety

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