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Question
A firm provides the following sales data:
| Expected unit sales | 5,000 | Unit variable cost | $10 |
| Unit selling price | $16 | Total fixed cost | $12,000 |
Required:
a. Calculate the break-even point in dollar sales.
b. Calculate the margin of safety in dollar sales.
Answer
This answer is hidden. It contains 148 characters.
Related questions
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Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.