Question
Henning Co. estimates that variable costs will be 60% of sales and fixed costs will total $2,160,000. The selling price of the product is $10,
Henning Co. estimates that variable costs will be 60% of sales and fixed costs will total $2,160,000. The selling price of the product is $10, and 600,000 units will be sold.
Instructions
Using the mathematical equation,
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(a) Compute the break-even point in units and dollars.
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(b) Compute the margin of safety in dollars and as a ratio.
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(c) Compute net income.
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Principles of Financial Accounting
Authors: Belverd E. Needles, Marian Powers
12th edition
978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283
