Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hitech Radio Inc. manufactures one type of radio. The average selling price is $ 1 1 6 per radio. The average variable cost amounts to

Hitech Radio Inc. manufactures one type of radio. The average selling price is $116 per radio. The average variable cost amounts to $61 per radio . The company's fixed costs are $30,000 per month.
Do not enter dollar signs or commas in the input boxes.
Round the units to the highest whole number.
a) Calculate the monthly volume sales needed to break-even.
Break-Even Point (Units): Answer
b) Determine the break-even point in sales dollars.
Break-Even Point (Dollars): $Answer
c) If the company's current monthly sales amount is $124,000, what is the margin of safety in dollars and in units?
Margin of safety ($): $Answer
Margin of safety (units): Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago