Bets Buy Inc. estimates that selling price of each gear is $120, variable costs is $66 of sales and fixed costs will total $314,000. The company expect to sell 7,900 units.

Instructions

a. Calculate break-even sales in dollars and units - (4 marks).

b. Calculate the margin of safety and margin of safety ratio (2 marks)

C. Calculate the sales in dollars and units required to earn net income of $200,000 - (2 marks).

d) prepare the new CVP Income Statement proving operating income of $200,000

CVP Income Statement (5 Marks)