Exercise 5-16 a,c (Video) Oriole Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $600,000. The selling price of the product is $4.

Compute the break-even point in (1) units and (2) dollars.

(1)		Break-even sales			units
(2)		Break-even sales		$

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Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio.

(1)		Margin of safety		$
(2)		Margin of safety ratio			%

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