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Johnson Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $520,000. The selling price of the product is $4.
Johnson Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $520,000. The selling price of the product is $4.
Compute the break-even point in (1) units and (2) dollars.
(1) Break-even sales__________ units
(2) Break even sales $__________
Assuming actual sales are $2,000,000 compute the margin of safety in (1) dollars and (2) as a ration.
(1) Margin of safety $____________
(2) Margin of safety ratio ______________%
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