Selling price/unit $15

Variable cost/unit $10

Fixed costs $70,000

Targeted profit: $30,000

1. What is the breakeven point in units and dollars?

2. What sales would you need in units and dollars for the targeted profit listed above?

3. What sales would you need in units and dollars for the targeted profit listed above if the selling price decreased to $14.50/unit?

4. What sales would you need in units and dollars for the targeted profit listed above if variable cost/unit is $9.20 (selling price $15)?

5. What sales would you need in units and dollars for the targeted profit listed above if total fixed costs decrease by $3,000 (selling price $15, variable costs $10/unit)?

6. What sales would you need in units and dollars for the targeted profit listed above if variable costs decrease to $9/unit and fixed costs increase to $100,000 (selling price $15)?

7. What is the margin of safety in dollars and percentage using #1 and #2? Total sales $ breakeven sales $. 100,000- 14,000 =86,000