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Zootsuit Inc. makes travel bags that sell for P56 each. For the coming year, management expects fixed costs to total P320,000 and variable costs to

Zootsuit Inc. makes travel bags that sell for P56 each. For the coming year, management expects fixed costs to total P320,000 and variable costs to be P42 per unit. Compute the following:

a)break-even point in dollars using the contribution margin (CM) ratio;

b)the margin of safety and margin of safety ratio assuming actual sales are P1,382,400; and

c)the sales dollars required to earn net income of P410,000.

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