Question
XYZ Company is considering the manufacture of a new toy. Each toy would sell for $5 and would require $2.00 in variable costs. In addition,
XYZ Company is considering the manufacture of a new toy. Each toy would sell for $5 and would require $2.00 in variable costs. In addition, annual fixed costs associated with the project would total $84,000. Calculate: (a) the breakeven point in units, (b) the breakeven point in dollars, (c) the profit or loss if 34,000 toys were sold, (d) the margin of safety if 3 4,000 toys were budgeted to be sold (e) the number of toys that must be sold to earn a profit of $90,000, and (f) the profit if total revenue is $200,000
attachment EX 7e on page 35
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