Chapter 16, Problem 6CE

1.

To determine

Compute the break-even point in units.

2.

To determine

Compute the break-even revenue.

3.

To determine

Compute the margin of safety in units.

4.

To determine

Compute the margin of safety in sales revenue.

5. a.

To determine

Compute the break-even point in units, if the selling and administrative expenses are reduced to $38,800.

5. b.

To determine

Compute the break-even revenue, if the selling and administrative expenses are reduced to $38,800.

5. c.

To determine

Compute the margin of safety in units, if the selling and administrative expenses are reduced to $38,800.

5. d.

To determine

Compute the margin of safety in sales revenue, if the selling and administrative expenses are reduced to $38,800.