Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000.
Question:
Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000. The selling price of the product is $4.
Instructions
(a) Prepare a CVP graph, assuming maximum sales of $3,200,000. (Note: Use $400,000 increments for sales and costs and 100,000 increments for units.)
(b) Compute the break-even point in
(1) Units and
(2) Dollars.
(c) Compute the margin of safety in
(1) Dollars and
(2) As a ratio, assuming actual sales are $2 million.
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a b 1 Breakeven sales in units 4X 250X 600000 150X 6000...View the full answer
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Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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