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A company sells a product for $64. Variable costs are 60% of sales, and monthly fixed costs are $58,368. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $131,584? c. Assuming the company achieves the level of sales required in part b, what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units. < Required A Required B >

A company sells a product for $64. Variable costs are 60% of sales, and monthly fixed costs are $58,368. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $131,584? c. Assuming the company achieves the level of sales required in part b, what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units. < Required A Required B >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company sells a product for $64. Variable costs are 60% of sales, and monthly fixed costs are $58,368. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $131,584? c. Assuming the company achieves the level of sales required in part b, what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units. < Required A Required B >
Transcribed Image Text:A company sells a product for $64. Variable costs are 60% of sales, and monthly fixed costs are $58,368. Answer the following questions: Required: a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $131,584? c. Assuming the company achieves the level of sales required in part b, what is the margin of safety in sales dollars? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the break-even point in units? Note: Do not round intermediate calculations. Break-Even Point units. < Required A Required B >
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