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The following monthly data are available for All Goods, Inc. It produces only one product: Selling price per unit: $50; Unit variable expenses: $10; Total
The following monthly data are available for All Goods, Inc. It produces only one product: Selling price per unit: $50; Unit variable expenses: $10; Total fixed expenses: $45,000. The companys income tax is 25%.
Instructions
a. Calculate the number of units sell in order to break even
b. If All Goods wants to achieve targeted net income is $75,500, calculate the number of units must sell and sales must generate
c. Based on its targeted sales from part b, what is the margin of safety in sales and ratio for the company
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