Question
Company Cmakes calculators that sell for $20 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $9
Company Cmakes calculators that sell for $20 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $9 per unit.
a) Calculate the break-even point in units
b) Calculate the break-even point in dollars
c) Calculate the margin of safety, assuming actual sales of $500,000
d)Calculate the sales required in dollars to earn a net income of $165,000
e) company C has a higher operating leverage and if sales are declining what would be the impact on the companys net incomeand if the sales areincreasingwhatwould be the result on the net income
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