12.4 analysis CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000. Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.Required:Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.
12.4 analysis CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000. Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.Required:Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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12.4 analysis
CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000.
Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.
Required:
Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.
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