Company A has an average monthly profit of $10,260,000 The average and expected monthly sales of its 3 perfumes (X, Y & Z) are shown below:

X Y Z

Sales Qty (000) 33 22 55

Unit Selling Price $110 $180 $370

Unit Variable Cost $35 $50 $125

Required:

Assume sales mix remains relatively constant.

a) Compute the Margin of Safety as % of sales of the companys business

b) Compute the monthly Breakeven Quantity for the 3 products using:

i. BE% method

ii. CM/u or CM ratio method