Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pls take a detailed look and for each question pls write reasonable words about 200-300 5. Evaluate the sales volume in units and sales dollars
pls take a detailed look and for each question pls write reasonable words about 200-300
5. Evaluate the sales volume in units and sales dollars at breakeven point in one (1) paragraph by explaining how to use these measures for better business decision- making Break-even sales: Fixed costs $25,000.00 Sale Price - Unit Variable Cost $125.00 $25.00 Unit contribution margin Break-even sales (units) Sale price Break-even sales (dollars) $100.00 250.00 $125.00 $31,250.00 6. Evaluate Operating Leverage and Safety Margin in one (1) paragraph by explaining what this means in terms of the risk to your business if your sales in 2021 are estimated to go up or down by 20%. Operating leverage: Unit CM $ $100.00 Units 1,000 Contribution margin Income from operations Operating leverage 100,000.00 50,000.00 2.0 Margin of safety Sale Price Expected sales $125.00 Break-even point $125.00 Margin of safety (in dollars) Expected sales Margin of safety (as a percentage of sales) Units 1,000 250 125,000.00 31,250.00 93,750.00 125,000.00 75.0%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started