Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.
In Mini-Exercise 12.4, Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000.
Calculate Bay Area Cycle's break-even point in units and total sales dollars.
Calculate Bay Area Cycle's margin of safety and margin of safety ratio.