Ivanhoe Company estimates that variable costs will be 60.00% of sales, and fixed costs will total...

Transcribed Image Text:

Ivanhoe Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $608,000. The selling price of the product is $4. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is incorrect. Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales (c) 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 % Ivanhoe Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $608,000. The selling price of the product is $4. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is incorrect. Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales (c) 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 %

Answer rating: 100% (QA)

Breakeven salesunits 3... View the full answer