Cullumber Co. estimates that variable costs will be 70% of sales and fixed costs will total $2,458,500. The selling price of the product is $11.00, and 780,000 units will be sold. Using the mathematical equation,

Compute the break-even sales units and sales dollars.

Break-even sales units		enter the break-even sales units	units
Break-even sales dollars		$enter the break-even sales in dollars

Question Part Score

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Compute the margin of safety in dollars and as a ratio. (Round margin of safety ratio to 1 decimal place, e.g. 52.7.)

Margin of safety in dollars		$enter a dollar amount
Margin of safety ratio		enter percentages rounded to 1 decimal place	%

Question Part Score

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Compute net income.

Net income

$enter the net income in dollars