Julia Child Company sells baby car seats to retailers for an average of $91 each. The variable cost of each car seat is $55 and monthly fixed selling costs total $7,000. Other monthly fixed costs of the company total $8,500

Required:

1. What is the breakeven point in number of car seats?
2. What is the margin of safety, assuming sales total $48,000?
3. What is the breakeven level in car seats, assuming variable costs increase by 20%?
4. What is the breakeven level in car seats, assuming the selling price goes up by 10%, fixed selling costs decline by 10%, and other fixed costs decline by $1,000?

Answer rating: 100% (QA)

CALACULATION OF 1 Break even point in number of car seats fixed costs Contribution margin per seat 7... View the full answer