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A company sells a product for $63. Variable costs are 60% of sales, and monthly fixed costs are $60,732. Answer the following questions: Required:
A company sells a product for $63. Variable costs are 60% of sales, and monthly fixed costs are $60,732. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $123,984? c. Assuming the company achieves the level of sales required in part b. what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units < Required A Required B > Required A Required B Required C What unit sales would be required to earn a target profit of $123,984? Note: Do not round intermediate calculations. Total Required Sales units Required A Required B Required C Assuming Dallas achieves the level of sales required in part b, what is the margin of safety in sales dollars? Note: Do not round intermediate calculations. Margin of Safety
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There are 3 Steps involved in it
Step: 1
a To find the breakeven point in units we need to use the formula Breakeven point units Fixed costs ...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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