Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20, and the fixed monthly manufacturing costs add up to $10,000. The company's other fixed monthly costs add up to $8,000.

Required: a. What is the balance point in batteries?

b. What is the margin of safety, assuming sales total $60,000?

C. What is the break-even level in the batteries, assuming variable costs increase by 20%?

d. What is the break-even level in the batteries, assuming that the selling price increases by 10%, manufacturing fixed costs decrease by 10%, and other fixed costs decrease by $100?

calculation..

Answer rating: 100% (QA)

a The balance point in batteries can be calculated using the following formula Balance point Fixed c... View the full answer