a.

	Flexible	strong.	weak
selling price	10	20	35
Variable cost	8	13	24
Contribution margin	2	7	11
expected sales	18 000	12 000	6 000

Fixed costs are $170,500.

Assuming the sales mix remains constant, what would be the break-even sales in dollars for Flexible?

Assuming the sales mix does not change and if target net income before tax for the coming year is $62 000, how many units of Standard must be sold?

What is Massop Company's margin of safety?

b. If the break-even point in units is 2 000 for Long Bay Company and contribution margin per unit was $20 per unit. What is the total sales units if Long Bay Company desires a net income of $45 000?