Bernard Windows is a small company that installs windows. Its cost structure is as follows: Selling price
Question:
Bernard Windows is a small company that installs windows. Its cost structure is as follows:
Selling price for each window installation $500
Variable cost of each window installation $400
Annual fixed costs $150,000
Calculate the breakeven point in units and revenue and (b) the number of windows Bernard Windows must install and the revenues needed to earn a target operating income of $100,000.
Same information as above but now tax rate is 30%. Calculate the number of windows Bernard Windows must install and the revenues needed to earn a target net income of $63,000.
Calculate the margin of safety in units and dollars and the margin of safety percentage if the company expects to sell 2,400 windows in the year.
Number of units sold is 2500.
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright