Exercise H

Fall-For-Fun Company sells three products. Last years sales were $600,000 for

parachutes, $800,000 for hang gliders, and $200,000 for bungee jumping harnesses. Variable costs

were: parachutes, $400,000; hang gliders, $700,000; and bungee jumping harnesses, $100,000.

Fixed costs were $240,000. Find (a) the break-even point in sales dollars and (b) the margin of

safety