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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Breakeven point where from/how calculated is the breakeven point?

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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