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Q2: Suppose MASS Company's breakeven point is revenues of $1,100,000. Fixed costs are $660,000. ...

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Accounting

Q2: Suppose MASS Company's breakeven point is revenues of $1,100,000. Fixed costs are $660,000.
Required:
4100,000**CN660,000
Compute the contribution margin percentage.
1,100,000Cm660,000
cms
2. Compute the selling price if variable costs are $16 per unit.
3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars.
4. What does this tell you about the risk of MASS Company's making a loss? What are the most likely reasons for this risk to increase?
5 Marks
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