Q$2$: Suppose MASS Company's breakeven point is revenues of $$1,100,000.$ Fixed costs are $$660,000.$

Required:

$4100,000**\frac{CN}{660,000}$

Compute the contribution margin percentage.

$\frac{1,100,000Cm}{660,000}$

cms

$2.$ Compute the selling price if variable costs are $$16$ per unit.

$3.$ Suppose $75,000$ units are sold. Compute the margin of safety in units and dollars.

$4.$ What does this tell you about the risk of MASS Company's making a loss? What are the most likely reasons for this risk to increase?

$5$ Marks