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Determine break-even point and analyze margin of safety. Item Amount Selling price per unit $50 Variable cost per unit $30 Fixed costs $150,000 Expected sales
Determine break-even point and analyze margin of safety.
Item | Amount |
Selling price per unit | $50 |
Variable cost per unit | $30 |
Fixed costs | $150,000 |
Expected sales volume | 10,000 units |
Requirements:
Calculate the contribution margin per unit and total contribution margin ratio.
Determine the break-even point in units and sales dollars.
Analyze the margin of safety and discuss its implications for the service industry.
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