In the month of June, Bedford Company sold 350 widgets. The average sales price was...
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Accounting
In the month of June, Bedford Company sold 350 widgets. The average sales price was $34. During the month, fixed costs were $6,320 and variable costs were 40% of sales.
Instructions
A. Determine the contribution margin in dollars, per unit, and as a ratio.
B. Compute the break-even point in units and dollars.
C. How much can sales decline before Bedford Company experiences a loss? (hint: compute margin of safety)
D. What would be the sales dollars and number of units sold if Bedford Company
wishes to have a target profit of $4,000.
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