Q1 Xiong, Inc. sells car batteries to service stations for an average of $25 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $18,000. 12 Marks

Required:

a. What is the breakeven point in batteries?

b. What is the margin of safety, assuming sales total $60,000?

c. What is the breakeven level in batteries, assuming variable costs increase by 20%?

d. What is the breakeven level in batteries, assuming the selling price goes up by 10%, fixed manufacturing costs decline by 10%?