Mabo Company makes calculators that sell for $20 each. For the coming year, management expects fixed costs

Question:

Mabo Company makes calculators that sell for $20 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $9 per unit.
Instructions

(a) Compute break-even point in units using the mathematical equation.

(b) Compute break-even point in dollars using the contribution margin (CM) ratio.

(c) Compute the margin of safety percentage assuming actual sales are $500,000.

(d) Compute the sales required in dollars to earn net income of $165,000.

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Related Book For book-img-for-question

Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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Question Posted: Feb 15, 2024 09:00 AM

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Mabo Company makes calculators that sell for $20 each. For the coming year, management expects fixed costs

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a Sales Variable costs Fixed costs Net income 200 90220000 ...View the full answer

Financial And Managerial Accounting

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