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ACCt 546 EXAMINATION ONE new Ma: Ape s Help Sav The PowerClean Company manufactures an engine for carpet cleaners called the Snooper. Budgeted cost and

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ACCt 546 EXAMINATION ONE new Ma: Ape s Help Sav The PowerClean Company manufactures an engine for carpet cleaners called the Snooper. Budgeted cost and revenue data for the Snooper" are given below, based on sales of 36,000 units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Income $1,260,000 05,000 355, 000 134,0g0 221,000 12 points 01:5040 Cost of goods sold consists of $601,000 of variable costs and $304,000 of fxed costs. Operating expenses consist of $47000 of variable costs and $B7,000 of fixed costs Required: A. Calculate the break-even point in units and sales dollars B. Calculate the safety margin (in dollars). C. PowerClean n received an order for 8,000 units at a price of $20. There will be no increase in flxed costs, but variable costs wil be reduced by So.54 per unit because of cheaper packaging. Determine the projected increase or decrease in profit assuming there are no opportunity costs units A. Break even point in units Break-even point in doliars B. Safety margin Next > 19 of 21

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