Exercise $7$

Given the following information

$\backslash$table$[[$Target net income,$250,000],[$Selling price per unit,$30],[$Contribution margin ratio,$0\mathrm{.}45],[$Total fixed costs,$700,000]]$

Required

Break$-$even point in units $(1$

Units needed to achieve target net income $(2$

Break$-$even point in dollars $(3$

Sales dollars needed to achieve target net income $(4$

The margin of safety in units $(5$

The margin of safety in dollars $(6$

The margin of safety ratio $(7$

Solution