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3. Lily Fan Company has three products: Economy, Standard, and Deluxe. The following information is available for the three products: Economy Standard Deluxe Selling price
3. Lily Fan Company has three products: Economy, Standard, and Deluxe. The following information is available for the three products: Economy Standard Deluxe Selling price $10 $20 $35 Variable cost $8 $13 $24 Contribution margin $2 Expected sales 18,000 $7 12,000 $11 6,000 Fixed costs are $170,500. Required a. calculate the break-even sales in dollars for Economy. b. Calculate the number of units to be sold to achieve a target net income before tax for the coming year of $62,000. c. Calculate Lily Fan Company's margin of safety
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