Lush Lawn, Incorporated produces and sells electric lawn trimmers for $170 each. The variable costs of...

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Lush Lawn, Incorporated produces and sells electric lawn trimmers for $170 each. The variable costs of each mower total $130 while total monthly fixed costs are $6.400 Current monthly sales are $53,000. The company is considering a proposal that will decrease the selling price by 10%, increase monthly fixed costs by 50%, and increase unit sales to 600 units per month. Required: a. Compute the company's current break-even point in units and dollars. b. What is the company's current margin of safety in units, dollars, and percentage? a Break-even point a. Break-even sales b. Margin of safety b. Margin of safety in dollars b. Margin of safety in ratio units units % 4 Lush Lawn, Incorporated produces and sells electric lawn trimmers for $170 each. The variable costs of each mower total $130 while total monthly fixed costs are $6.400 Current monthly sales are $53,000. The company is considering a proposal that will decrease the selling price by 10%, increase monthly fixed costs by 50%, and increase unit sales to 600 units per month. Required: a. Compute the company's current break-even point in units and dollars. b. What is the company's current margin of safety in units, dollars, and percentage? a Break-even point a. Break-even sales b. Margin of safety b. Margin of safety in dollars b. Margin of safety in ratio units units % 4

Answer rating: 100% (QA)

a Current breakeven point To compute the companys current breakeven point we can use the formula Breakeven point units Fixed costs Contribution margin ... View the full answer