Sole Company manufactures running shoes. The selling price is $80 per pair (unit) and variable costs...

 

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Sole Company manufactures running shoes. The selling price is $80 per pair (unit) and variable costs are $60 per pair (unit). The sales volume of $776,000 generates $100,750 of net income before taxes. Instructions: 1) Compute total fixed costs. 2) Compute total variable costs. 3) Compute the break-even point in units. 4) Compute the quantity of units above the break-even point (margin of safety). Sole Company manufactures running shoes. The selling price is $80 per pair (unit) and variable costs are $60 per pair (unit). The sales volume of $776,000 generates $100,750 of net income before taxes. Instructions: 1) Compute total fixed costs. 2) Compute total variable costs. 3) Compute the break-even point in units. 4) Compute the quantity of units above the break-even point (margin of safety).

Answer rating: 100% (QA)

1 Here total sales volume 776000 and selling price per pair unit 80 So sales units Total sales volum... View the full answer