Question
My Homework Inc. sells special boxes of Chocolates to wealthy clients for an average of $55 each. The variable costs of each chocolate box are
My Homework Inc. sells special boxes of Chocolates to wealthy clients for an average of $55 each. The variable costs of each chocolate box are $28 and monthly fixed manufacturing costs total $16,000. Other monthly fixed costs of the company total $13,500.
Required:- 1- What is the break-even level in boxes of chocolates? 2- What is the margin of safety assuming sales total $132,000? 3- What is the break-even level in chocolate boxes assuming variable costs increase by 25 percent? 4- What is the break-even level in chocolate boxes assuming the selling price goes up by 15 percent, fixed manufacturing costs decline by 12 percent and other fixed costs decline by $140?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started