Question
KF Services provides Cars' check up its customers. The selling price of each check up is $75 and the variable costs associated are $42,5. The
KF Services provides Cars' check up its customers. The selling price of each check up is $75 and the variable costs associated are $42,5. The monthly relevant fixed costs are $10,000. Required: a. How many check up are needed to break even? What is the break even point in dollars? b. What is the margin of safety in dollars, assuming sales total $30,000? c. How many check up are needed to achieve a net income of $40,000?, if the tax rate is 20% d. What is the break even level in units, assuming the fixed costs are $5000 plus 10% of revenue received?
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