ABC Company is considering producing a new product and you have been asked to perform Cost Volume Profit analysis to help them decide on whether

to produce the product or not.

Fill in the blanks with the appropriate answers. Do not use commas or $ signs!!

Information:

Sales price is $$40$ per unit.

Variable cost per unit is $$15.$

Fixed cost is $$100,000.$

Target Net Income is $$250,000$

How many units must they produce and sell to breakeven?

What are breakeven revenues?

How many units must they produce and sell to achieve the target net income?

The revenues required to achieve target net income of $$250,000?$

What is the Margin of Safety if actual sales revenues are $$575,000?$