A company wants to participate in a product fair in the Plaza de Len, to do so
Question:
A company wants to participate in a product fair in the Plaza de León, to do so it needs to do a study of its Costs - Volume - Profit and specifically its balance point and safety margin.
The cost of renting the premises where the business will be located will cost C$1,000.00. The product to be sold has a unit cost of 0.50. An agreement has been made with the supplier that everything that is not sold can be returned and only what is cancelled. is sold, the unit sales price has been established is 0.90, the company's sales projection is 6,000 units.
Answer if the following is True or False:
The breakeven point for the company is 3,500 units
The Contribution Margin is 0.40
The company's Margin of Safety is 58%
The fixed costs of the company are C$ 6,000.00
The company's breakeven point is 2,500 units
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg