[sweetgirlj811]

Calculate the unknowns for the following situations based on the given data

Actual total sales revenue $400,000
Total fixed cost $76,000
Unit variable cost $15
Contribution margin ration 40%

a) Breakeven point in dollars
b) unit selling price
c) breakeven point in units
d) margin of safety

If anyone can walk me through it I would really appreciate it!

[bunnyKutty]

Calculate the unknowns for the following situations based on the given data

Actual total sales revenue $400,000
Total fixed cost $76,000
Unit variable cost $15
Contribution margin ration 40%

a) Breakeven point in dollars
b) unit selling price
c) breakeven point in units
d) margin of safety

If anyone can walk me through it i would really appreciate it!!

a) Break even point in dollars = fixed cost/contribution margin
= 76000/40%
= $ 190,000
b) Contribution = sales - variable cost

If contribution margin is 40% then variable cost percentage will be 60%.
Vc per unit = 15
Then selling price per unit = (15 * 100) /60 = 25

c) break even point in units = fixed cost/(selling price per unit - variable cost per unit)
= 76000/(25 - 15)
= 7600 units

d) Margin of safety = Actual sales - break even sales
= 400,000 - 190,000
= $ 210,000