Question: Question 4: (total 6 marks) AD Company estimates that variable costs will be 70% of sales and fixed costs will total $1,800,000. The selling price

Question 4: (total 6 marks) AD Company estimates that variable costs

Question 4: (total 6 marks) AD Company estimates that variable costs will be 70% of sales and fixed costs will total $1,800,000. The selling price of the product is $10, and 700,000 units will be sold. Instructions: Using the mathematical equation (a) Compute the break-even point in units and dollars. (2 marks) (b) Compute the margin of safety in dollars and as a ratio. (2 marks) (c) Compute net income. (2 marks)

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