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The following is Buffay Corporation's contribution format income statement for last month: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income $12,000,000 1,800,000 1,400,000 1.280,000 $1,220,000 Buffay Corp, has no beginning or ending inventories. A total of 90,000 units were produced and sold last month a) What is the company's break-even in units? b) How many units would the company have to sell to attain target operating profits of $850,000? c) What is the company's margin of safety in dollars?

The following is Buffay Corporation's contribution format income statement for last month: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income $12,000,000 1,800,000 1,400,000 1.280,000 $1,220,000 Buffay Corp, has no beginning or ending inventories. A total of 90,000 units were produced and sold last month a) What is the company's break-even in units? b) How many units would the company have to sell to attain target operating profits of $850,000? c) What is the company's margin of safety in dollars?

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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The following is Buffay Corporation's contribution format income statement for last month: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income $12,000,000 1,800,000 1,400,000 1.280,000 $1,220,000 Buffay Corp, has no beginning or ending inventories. A total of 90,000 units were produced and sold last month a) What is the company's break-even in units? b) How many units would the company have to sell to attain target operating profits of $850,000? c) What is the company's margin of safety in dollars?
Transcribed Image Text:The following is Buffay Corporation's contribution format income statement for last month: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income $12,000,000 1,800,000 1,400,000 1.280,000 $1,220,000 Buffay Corp, has no beginning or ending inventories. A total of 90,000 units were produced and sold last month a) What is the company's break-even in units? b) How many units would the company have to sell to attain target operating profits of $850,000? c) What is the company's margin of safety in dollars?
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