problem2: compute the break even point in sales dollars

updated

Problem 1: (5 points) SMSA currently delivers packages for $10 each. During the month, units sold were 4500 units, fixed costs were $18,000 and variable costs were 40% of sales. Instructions: 1. Compute the break-even point in sales dollars. (1 point) 2. Compute the sales required to earn net income of $ 42,000. (1.5 points) 3. Compute the margin of safety dollars. (1.5 points) 4. Compute the margin of safety ratio. (1 point) Problem2: (3 points) Giant Manufacturing Co. sells three types of bicycles. It has fixed costs of $350,000 per month. The sales and variable costs of these products for July are as follows: Problem2: (3 points) Giant Manufacturing Co., sells three types of bicycles. It has fixed costs of $350,000 per month. The sales and variable costs of these products for July are as follows: Bikes Mountain $1,800,000 1000,000 Racing $1,200,000 800,000 Sales Variable costs Touring $2,000,000 1,400,000 Instructions: Compute the break-even point in sales dollars