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Legrand Company produces hand cream in plastic jars. Each jar sells for $3.40. The variable cost for each jar (materials, labor, and overhead) totals $2.55.
Legrand Company produces hand cream in plastic jars. Each jar sells for $3.40. The variable cost for each jar (materials, labor, and overhead) totals $2.55. The total fixed cost is $58,140. During the most recent year, 81,600 jars were sold.
Required:1. What is the break-even point in units for Legrand? What is the margin of safety in units for the most recent year?
2. How many units must be sold for Legrand to earn a profit of $25,500?
3. What is the level of sales dollars needed for Legrand to earn operating income of 10% of sales?
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