A company sold a total of 1,000 units for total sales revenue of $90,000. ...
80.2K
Verified Solution
Link Copied!
Question
Accounting
A company sold a total of 1,000 units for total sales revenue of $90,000.
The company incurred total variable expenses of $49,500 and total fixed expenses of $ 33,210.
Based on this, the company reported a total contribution margin of $40,500 and net operating income of $ 7,290.
Use this information to answer the following questions. Assume that all units are within the relevant range.
Calculate the break-even point in sales dollars. Break-even point Calculate the number of units that must be sold to earn a target profit of $24,300. Number of units Calculate the margin of safety in dollars and the margin of safety percentage. Margin of safety in dollars Margin of safety percentage %
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
