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Presto Company makes radios that sell for $29 each. For the coming year, management expects fixed costs to total $209,343 and variable costs to be
Presto Company makes radios that sell for $29 each. For the coming year, management expects fixed costs to total $209,343 and variable costs to be $20.01 per unit. (a) Compute the break-even point in dollars using the contribution margin (CM) ratio. Break-even point $ Compute the margin of safety ratio assuming actual sales are $852,652. (Round margin of safety ratio to 2 decimal places, e.g. 10.50%.) Margin of safety % Compute the sales dollars required to earn net income of $100,812. Required sales $
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