Braile Gear Works sells a single gear for a price of $73.00 per unit. The variable costs of the gear are $41.00 per gear and annual fixed costs are $548,800. Required: a. What is the break-even level of annual sales for Braile Gear Works? b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? Note: Do not round intermediate calculations. Break-even level Number of units to be sold parts

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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Braile Gear Works sells a single gear for a price of $73.00 per unit. The variable costs of the gear are $41.00 per gear and annual fixed
costs are $548,800.
Required:
a. What is the break-even level of annual sales for Braile Gear Works?
b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection
for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year?
Note: Do not round intermediate calculations.
Break-even level
Number of units to be sold
parts
Transcribed Image Text:Braile Gear Works sells a single gear for a price of $73.00 per unit. The variable costs of the gear are $41.00 per gear and annual fixed costs are $548,800. Required: a. What is the break-even level of annual sales for Braile Gear Works? b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? Note: Do not round intermediate calculations. Break-even level Number of units to be sold parts
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