Xi Company is the exclusive Iowa distributor of lawn mowers for a small manufacturing company. It sells only one model at £600 per unit and for which Xi pays £250. Xi's other variable costs amount to £50 per unit. Fixed costs are £2,000. In October, Xi sold 15 lawn mowers and it sold 20 in November.

Required:

Calculate the following values:

a. Monthly break-even point in monetary sales

b. Monthly break-even point in units

c. Monthly income for October

d. Monthly income for November

e. Margin of safety for October

Answer rating: 100% (QA)

To calculate the values requested well use the following formulas a Monthly breakeven point in monet... View the full answer