5. Henning Co. estimates that variable costs will be 70% of sales and fixed costs will...

 

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5. Henning Co. estimates that variable costs will be 70% of sales and fixed costs will total $2.160,000. The selling price of the product is $10, and 750,000 units will be sold. Using the mathematical equation, (a) Compute the break-even point in units and dollars. (b) Compute the margin of safety in dollars and as a ratio. (c) Compute net income. 5. Henning Co. estimates that variable costs will be 70% of sales and fixed costs will total $2.160,000. The selling price of the product is $10, and 750,000 units will be sold. Using the mathematical equation, (a) Compute the break-even point in units and dollars. (b) Compute the margin of safety in dollars and as a ratio. (c) Compute net income.

Answer rating: 100% (QA)

To compute the breakeven point margin of safety and net income well use the following formulas a Bre... View the full answer