question #3

u files from the se ned all becamathcombe We sell pens for $4.50 each. Variable costs of the pen are $2.50 and fixed costs are $42,000 Calculate, and show all your work, for the following: 1) Break even in Dollars ANS 2) If we increase fixed costs by $10,000, it will cause variable costs to decline by 250 per unit. What will sales (in Units) need to be to attain a $15,000 profit, assuming no taxes. ANS I I 3) Using the original information, what would our margin of safety be if we sold 25,000 units? ANS