1. Gilitch Company has variable costs of $600,000. They are planning to sell 200,000 pairs of mittens for $4 a pair. If Ilitch breaks even at this level of sales what are the fixed costs?

1. Zark and Sons Ltd. makes travel bags that dissolve in water and has variable costs of $42 per unit and expects fixed costs to total $320,000. The travel bags sell for $56 each. Calculate:

1. The Break Even Point in Dollars

2. The Margin of Safety and Margin of Safety ratio assuming actual sales total $1,382,400

3. The sales dollars required to earn net income of $410,000