ABX Inc, reports the following operating results for the month of August: Sales $400,000 (units 10,000,...
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ABX Inc, reports the following operating results for the month of August: Sales $400,000 (units 10,000, unit price $160) Total Variable costs $560,000 (variable cost per unit $112) Total Contribution margin $240,000 Total Fixed costs $190,000 Management is considering increasing the selling price by 10% with no change in costs. Required: a. Compute the breakeven point in dollars if management increase the selling price (Show all of your work) b. Using your answer in part a, Compute the margin of safety ratio (Show all of your work) ABX Inc, reports the following operating results for the month of August: Sales $400,000 (units 10,000, unit price $160) Total Variable costs $560,000 (variable cost per unit $112) Total Contribution margin $240,000 Total Fixed costs $190,000 Management is considering increasing the selling price by 10% with no change in costs. Required: a. Compute the breakeven point in dollars if management increase the selling price (Show all of your work) b. Using your answer in part a, Compute the margin of safety ratio (Show all of your work)
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a Computation of breakeven point in dollars if selling price is increased by 10 Current sell... View the full answer
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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