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Titan sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $5 each. Titan buys the
Titan sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $5 each. Titan buys the licensed decals from a supplier for $1.25 each and spends an additional $0.75 in variable operating costs per decal. The results of last month's operations are as follows:
Sales revenue | $10,000 |
Cost of goods sold | 2,500 |
Gross profit | 7,500 |
Operating expenses | 3,000 |
Operating income | $4,500 |
Required:
a. What is Titan's monthly breakeven point in units? In dollars?
b. What is Titan's margin of safety (both units and dollars)?
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