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Corp.'s breakeven point is revenues of $1,600,000. Fixed costs are $640,000. Compute the contribution margin percentage. Compute the selling price if variable costs are $15
Corp.'s breakeven point is revenues of $1,600,000. Fixed costs are $640,000.
Compute the contribution margin percentage.
Compute the selling price if variable costs are $15 per unit.
With 70,000 units are sold. Compute the margin of safety in units and dollars.
What does this tell you about the risk of the corp making a loss? What are the most likely reasons for this risk to increase?
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