Rossi Incorporated makes track suits that sell for $70 each. Actual sales are $1,036,000. Management estimates that fixed costs will total $233,100 and variable costs will be $49 per unit this coming year.

a. Calculate the break-even point In sales dollars using the contribution margin ratio. (Round contribution margin ratio to 4 decimal places, e.g. 15.2964% and final answer to 0 decimal places, e.g. 125.)
Break-even point In dollars $ .............

b. Calculate the margin of safety in dollars and the margin of safety ratio. (Round margin of safety in dollars to the nearest whole dollar, e.g. 5,1/5 and margin of safety ratio to 2 decimal places, e.g. 15.25%.)

Margin of safety $....................

Margin of safety ratio ...............%

c. Calculate the sales dollars required to earn an operating income of $184,500. (Round answer to the nearest whole dollar, e.g. 5,275.)

Required sales In dollars $ ...............

Answer rating: 100% (QA)

Contribution margin ratio 704970 30 a Break even point in dollars Fi... View the full answer