Question
Zeta Company produces routers for retail sale. The routers sell for $80 per unit, and the variable costs per unit = $50. Total fixed costs
Zeta Company produces routers for retail sale. The routers sell for $80 per unit, and the variable costs per unit = $50. Total fixed costs = $24,000.
a. Calculate the breakeven point in units and the dollar breakeven point.
b. How many units must Zeta Company sell to earn a target income of $12,000?
c. At a sales level of $100,000, calculate the margin of safety in dollars.
Zeta Company produces routers for retail sale. The routers sell for $80 per unit, and the variable costs per unit = $50. Total fixed costs = $24,000.
a. Calculate the breakeven point in units and the dollar breakeven point.
b. How many units must Zeta Company sell to earn a target income of $12,000?
c. At a sales level of $100,000, calculate the margin of safety in dollars.
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
