$90'000

Question #6 Cost Estimation 1 Jerry Co produces and sells socks. Variable costs are budgeted at $4 per pair, and fixed costs for the year are expected to folat 590 so per pair Estimate the sales units required for Jerry Co, to make a before-tax profit m or $12.000 2. The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $120,000 100 $120,000 100 60 Variable costs Contribution margin Fixed costs 40 72,000 48,000 36,000 $12,000 36,000 84,000 72,000 $12,000 Operating income (TTB) Required: X Company's margin of safety ratio