Question
Current operating income for Bay Area Cycles Co. is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense
Current operating income for Bay Area Cycles Co. is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $88,000.
Required:
1. Calculate Bay Area Cycles break-even point in units and total sales dollars.
2. Calculate Bay Area Cycles margin of safety and margin of safety ratio.
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Auditing and Assurance services an integrated approach
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
15th edition
978-0133125634, 9780133423815, 133125637, 133423816, 978-0133125689
