Question
The following is Buffay Corporation's contribution format income statement for last month: Sales $12,000,000 Less: variable expenses 10,600,000 Contribution margin 1,400,000 Less: fixed expenses 1,280,000
The following is Buffay Corporation's contribution format income statement for last month:
Sales $12,000,000
Less: variable expenses 10,600,000
Contribution margin 1,400,000
Less: fixed expenses 1,280,000
Operating income $120,000
Buffay Corp. has no beginning or ending inventories. A total of 90,000 units were produced and sold last month a) What is the company's break-even in units?
b) How many units would the company have to sell to attain target operating profits of $850,000?
c) What is the company's margin of safety in dollars?
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Introduction To Accounting An Integrated Approach
Authors: Penne Ainsworth, Dan Deines
5th Edition
0073527009, 9780073527000
