A company sells a product for $63. Variable costs are 60% of sales, and monthly fixed...
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A company sells a product for $63. Variable costs are 60% of sales, and monthly fixed costs are $60,732. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $123,984? c. Assuming the company achieves the level of sales required in part b. what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units < Required A Required B > Required A Required B Required C What unit sales would be required to earn a target profit of $123,984? Note: Do not round intermediate calculations. Total Required Sales units Required A Required B Required C Assuming Dallas achieves the level of sales required in part b, what is the margin of safety in sales dollars? Note: Do not round intermediate calculations. Margin of Safety A company sells a product for $63. Variable costs are 60% of sales, and monthly fixed costs are $60,732. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $123,984? c. Assuming the company achieves the level of sales required in part b. what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units < Required A Required B > Required A Required B Required C What unit sales would be required to earn a target profit of $123,984? Note: Do not round intermediate calculations. Total Required Sales units Required A Required B Required C Assuming Dallas achieves the level of sales required in part b, what is the margin of safety in sales dollars? Note: Do not round intermediate calculations. Margin of Safety
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Answer rating: 100% (QA)
a To find the breakeven point in units we need to use the formula Breakeven point units Fixed costs ... View the full answer
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
Posted Date:
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