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Break-Even in Units and Sales Dollars, Margin of Safety Aubrey Company produces a single product. Last year's income stitement is as follows: 1. Compute the
Break-Even in Units and Sales Dollars, Margin of Safety Aubrey Company produces a single product. Last year's income stitement is as follows: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution maroin per unit to the nearest cent and round the contribution marpin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. 2. What was the margin of safety in dollars for the Company last year? Round your linal answer to the nearest whole dollar. 3. Suppose that Aubrey Company is considering an investment in new technology that will increase fixed costs by $240,500 per year, but will lower variable costs to 42 percent of sales. Units sold will remain unchanged. Prepare a budoeted income statement assuming the company makes this investment, Round all amounts to the nearest dollar. Feedtack Tereck Mr Wook Recalculate using new information. What is the new break-even point in units, assuming the investment is made? in vour computations, round the unit contribution margin to the : nearest cent. Round your final answer to the nearest whole unit. units
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