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Mabo Company makes calculators that sell for $20 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be
Mabo Company makes calculators that sell for $20 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $9 per unit. Instructions a) Calculate the break-even point in units ANS: break even point=fixed cost / sales price per unit- variable cost per unit b) Calculate the break-even point in dollars c) Calculate the margin of safety percentage assuming actual sales are $500,000 d) Calculate the sales required in dollars to earn a net income of $165,000 e) How can management of the company use break-even information to make better decision
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