Break-Even Units and Sales Revenue: Margin of Safety

Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,880,000 pages at a price of $0.06 each in the coming year. Product costs include:

Direct materials$0.009Direct labor$0.003Variable overhead$0.001Total fixed overhead$79,730

There is no variable selling expense; fixed selling and administrative expenses total $42,000.

Required:

In your computations that involve the contribution margin ratio, do not round the ratio.

1.Calculate the break-even point in units.

fill in the blank 1

units

2.Calculate the break-even point in sales revenue.

$fill in the blank 2

3.Calculate the margin of safety in units for the coming year.

fill in the blank 3

units

4.Calculate the margin of safety in sales revenue for the coming year.

$fill in the blank 4

5.What if the total selling and administrative expenses are reduced to $27,900? Recalculate the following:

a.Break-even point in units

b.Break-even point in sales revenue

c.Margin of safety in units for the coming year

d.Margin of safety in sales revenue for the coming year

BreakEven Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, DupIi-Pro estimates it will copy 2,830,000 pages at a price of $0.05 each in the coming year. Product costs include: Direct materials $0.009 Direct la bor $0.003 Variable overhead $0.001 Total xed overhead $?'3,?30 There is no variable selling expense; xed selling and administrative expenses total $42,000. Required: In your computations that involve the contribution margin ratior do not round the ratio. 1. Calculate 1e break-even point in units. i:i units 2. Calculate 1e break-even point in sales revenue. as: 3. Calculate 'ie margin of safety in units for the coming year. :i units 4. Calculate [he margin of safety in sales revenue for the coming year. it: 5. What if the total selling and administlatiye expenses are reduced to $27,900? Recalculate 1e following: a. Break-even point in units :] units b. Breakeven point in sales revenue $:] c. Margin of safety in units for the coming year :] units d. Margin of safety in sales revenue for the coming year $:]