Question
Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses
Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $55,240 per month.
a. Calculate the breakeven point expressed in terms of total sales dollars and sales volume.
Note: Do not round intermediate calculations.
b. Calculate the margin of safety and the margin of safety ratio. Assume current sales are $157,100.
Note: Do not round intermediate calculations. Round your percentage answer to 2 decimal places.
c. Calculate the monthly operating income (or loss) at a sales volume of 7,400 units per month.
Note: Do not round intermediate calculations
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