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with an explanation please 103. Xi Company is the exclusive Iowa distributor of lawn mowers for a small manufacturing company. It sells only one model
with an explanation please
103. Xi Company is the exclusive Iowa distributor of lawn mowers for a small manufacturing company. It sells only one model at 600 per unit and for which Xi pays 250. Xi's other variable costs amount to 50 per unit. Fixed costs are 2,000. In October, Xi sold 15 lawn mowers and it sold 20 in November. Required: a. Calculate the following values: Monthly break-even point in monetary sales b. Monthly break-even point in units c. Monthly income for October d. Monthly income for November e. Margin of safety for October ANSWER: a. 2,000/[(600 - 250 - 50)/600] = 4,000 b. 2,000/(600 - 250 - 50) = 6.67 or 7 mowers c. (15 ~ 300) - 2,000 = 2,500 d. (20 ~ 300) - 2,000 = 4,000 9,000 - 4,000 = 5,000, or 2 mowers eStep by Step Solution
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