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The WCompany manufactures an engine for carpet cleaners called the Snooper. Budgeted cost and revenue data for the Snooper are given below, based on sales
The WCompany manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of 40,000 units. Sales revenue $1,600,000 Less: Cost of goods sold 1,120,000 Gross margin $480,000 Less: Operating expenses 100,000 Income $380,000 Cost of goods sold consists of $810,000 of variable costs and $310,000 of xed costs. Operating expenses consist of $30,000 of variable costs and $70,000 of xed costs. Reguired: A. Calculate the breakeven point in units and sales dollars. B. Calculate the safety margin (in dollars). C. ExpertCleaner received an order for 6,000 units at a price of $25.00. There will be no increase in xed costs, but variable costs Will be reduced by $0.54 per unit because of cheaper packaging. Determine the projected increase or decrease in prot from the order, assuming there are no opportunity costs
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