Question: EXERCICE 4: 6 marks (each case 1.5 marks) Alley Company makes student book bags that sell for $60 each. For the coming year, management expects

EXERCICE 4: 6 marks (each case 1.5 marks) Alley Company makes student book bags that sell for $60 each. For the coming year, management expects fixed costs to be $225,000. Variable costs are $15 per unit. Instructions (a) Compute break-even sales in dollars using the mathematical equation (b) Compute break-even sales using the contribution margin (c) Compute margin of safety assuming actual sales are $ 980,000 (d) Compute the sales if target income of $100,000

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