3 Break-even Point in units 9 0 1 Break-even in dollars 2 $424,594 23 24 849.19 25 26 Reconciliation of NOI 27 NOI variable = 128 +fixed MOH per unit change in inventory * 429 equals NOI absorption. 430 Margin of Safety in units 176.54 Margin of Safety in dollars $88,267.70 Margin of Safety percentage 17.21% 24.47 $ 23,991.79 227.71 $ 5.573.14 $ 29,564.93

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Breakeven point where from/how calculated is the breakeven point?

**Break-even Analysis and Margin of Safety**

- **Break-even Point in Units:**
  - 849.19 units

- **Break-even in Dollars:**
  - $424,594

- **Margin of Safety:**
  - **In Units:** 176.54 units
  - **In Dollars:** $88,267.70
  - **Percentage:** 17.21%

**Reconciliation of Net Operating Income (NOI):**

- **NOI Variable:** $23,991.79
- **Fixed Manufacturing Overhead (MOH) per Unit x Change in Inventory:** 
  - Calculation: 24.47 x 227.71 = $5,573.14

- **Equals NOI Absorption:**
  - Total: $29,564.93
Transcribed Image Text:**Break-even Analysis and Margin of Safety** - **Break-even Point in Units:** - 849.19 units - **Break-even in Dollars:** - $424,594 - **Margin of Safety:** - **In Units:** 176.54 units - **In Dollars:** $88,267.70 - **Percentage:** 17.21% **Reconciliation of Net Operating Income (NOI):** - **NOI Variable:** $23,991.79 - **Fixed Manufacturing Overhead (MOH) per Unit x Change in Inventory:** - Calculation: 24.47 x 227.71 = $5,573.14 - **Equals NOI Absorption:** - Total: $29,564.93
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