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Fixed Variable Total $2.250.000 Sales Costs Goods sold Labor Supplies Utilities Rent Advertising Miscellaneous Total costs Net income 1,012.500 $480.000 180,000 6,000 15,000 36.000 39,000
Fixed Variable Total $2.250.000 Sales Costs Goods sold Labor Supplies Utilities Rent Advertising Miscellaneous Total costs Net income 1,012.500 $480.000 180,000 6,000 15,000 36.000 39,000 72,000 0 18,000 73 500 18.000 30,000 $630,000 $1,350.000 (1.980.000 $ 270,000 Required (a.) Determine the annual break-even dollar sales volume. Contribution margin ratio: Annual break-even dollar sales volumes: $ (b.) Determine the current margin of safety in dollars, $ (c.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $100,000? Q 0
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