Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units fill in the blank units Break-even dollars $fill in the blank 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units fill in the blank units Break-even dollars $fill in the blank 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Break-Even in Units and Sales Dollars, Margin of Safety
Drake Company produces a single product. Last year's income statement is as follows:
| Sales (21,000 units) | $1,295,700 |
| Less: Variable costs | 856,800 |
| Contribution margin | $438,900 |
| Less: Fixed costs | 250,300 |
| Operating income | $188,600 |
Required:
1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar.
| Break-even units | fill in the blank | units |
| Break-even dollars | $fill in the blank |
2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
$fill in the blank
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