Question
The ABC company manufactures one products. ABC Corporation's income statement as below: Cost, revenue and profits for ABC Co - 2021 Revenue $ Sales 7,500.00
The ABC company manufactures one products. ABC Corporation's income statement as below:
Cost, revenue and profits for ABC Co - 2021
| Revenue |
| $ |
| Sales |
| 7,500.00 |
| Less: Variable Costs |
|
|
| Wages | 2,000.00 |
|
| Materials | 1,500.00 | 3,500.00 |
|
|
|
|
| Contribution Margin |
| 4,000.00 |
|
|
|
|
| Less: Fixed Costs |
|
|
| Rent | 1,000.00 |
|
| Insurance | 200 | 1,200.00 |
| Net Income |
| 2,800.00 |
Calculate ABC break-even point in 2022?
What level of sales must the company generate to earn a profit of USD 10,000?
If the management of ABC cannot sell that many, to ensure viability what they could do?
Calculate ABC margin safety? Explain what it means
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
