This problem continues the Piedmont Computer Company situation from Chapter 19. Piedmont Computer Company manufactures personal computers
Question:
Requirements
1. What is the number of units that must be sold each month to reach the breakeven point?
2. If the company currently sells 945 units per month, what is the margin of safety in units and dollars?
3. If Piedmont Computer Company desires to make a profit of $15,000 per month, how many units must be sold?
4. Piedmont Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $90,000 per month, but the weighted-average variable cost per unit will increase to $525 per unit. What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not?
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Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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