Karatistka
Apr 21, 2011, 11:30 AM
McCoy Enterprises makes calculators that sell for $20 each. For the coming year, management expects fixed costs to total $220,000 and variable cost to be $9 per unit.
a. Compute break-even point in units.
b. Compute break-even point in dollars using the Contribution margin (CM) ratio.
c. Compute the margin of safety percentage assuming actual sales are $500,000.
d. Compute the sales required in dollars to earn net income of $165,000.
a. Compute break-even point in units.
b. Compute break-even point in dollars using the Contribution margin (CM) ratio.
c. Compute the margin of safety percentage assuming actual sales are $500,000.
d. Compute the sales required in dollars to earn net income of $165,000.