Asili Living Co is a Canadian company famous for its all-natural handcrafted toxin-free skin and bath line. The company's top product, anti-aging face serum sells for $29 each. For the coming year, management expects fixed costs to be $315,700. Variable costs are $21.80 per unit.

Instructions

(a)     Compute break-even sales using the contribution margin ratio.

(b)     Compute margin of safety ratio assuming actual sales are $1,950,200.

(c)    Compute the sales required to earn net income of $260,000, using the mathematical equation.

Answer rating: 100% (QA)

To solve the given problems we need to calculate the contribution margin ratio margin of safety ratio and the sales required to earn a specific net in... View the full answer