Current operating income for Bay Area Cycles Co. is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%, an fixed expense is $88,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio

Current operating income for Bay Area Cycles Co. is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%, an fixed expense is $88,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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