Question
Toya Company is considering the production and sale of a new product with the following sales and cost data: unit sales price, $360; unit variable
Toya Company is considering the production and sale of a new product with the following sales and cost data: unit sales price, $360; unit variable costs, $180; total fixed costs, $399,400; and projected sales, $900,000. Round your answers to the nearest whole unit or dollar. (a) Calculate break-even in units. (b) Calculate break-even in dollars (c) Calculate number of units that would need to be sold to generate an income of $560,000. (d) Calculate dollar sales that would be needed to generate the same profit as above. (e) Calculate the margin of safety stated as a percentage using the $900,000 projected sales level
Be sure to label each calculation and show all calculations.
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