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ictoria Campany reperts the following operating resuts for the month of Apr Sale

ID: 2413584 • Letter: I

Question

ictoria Campany reperts the following operating resuts for the month of Apr Sales (9,0o0 unts) ,00 Contrevton margis 180,000 30,000 Break-even poit in Uns Margin of safety uun,the cerereusian margan tech ique, conmg the boa-oven unts and dolws and margin ce ?"ety n datars, assuming ounges to sales arwo and varne as descreed?gve. (Roum, aanwers to 0 decimal Places, e.? Break-even pint in units Break-even peint in doliars Margin of safery Click if you would like to Shew Work for this questions Cen Shawwars

Explanation / Answer

8) Break even point = Fixed cost/Contribution margin per unit

= 150000/20

Break even point = 7500 Units

Break even point dollars = 7500*50 = $375000

Margin of safety = 450000-375000 = $75000

2) Selling price per unit = 50*96% = 48; Contribution margin per unit = 48-30 = 18

Break even point = 150000/18 = 8333 Units

Break even point dollars = 8333*48 = $400000

New sales = 9000*1.2 = 10800

Margin of safety = (10800-8333)*48 = $108400

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