Bets Buy Inc. estimates that selling price of each gear is $120, variable costs is $66 of sales and fixed costs will total $321,000. The company expect to sell 8,000 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 $315,000 - (2 marks).

d) prepare the new CVP Income Statement proving operating income of $315,000

CVP Income Statement (5 Marks)