Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: Calculate the Break Even Point (BEP) in dollars of product for each company. Calculate the percentage margin of safety for each company. If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. I Would like more info on point number 3 with the break even chart
Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: Calculate the Break Even Point (BEP) in dollars of product for each company. Calculate the percentage margin of safety for each company. If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. I Would like more info on point number 3 with the break even chart
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below:
Malcom ($) |
Yoda ($) |
|
Sales revenue |
60,000 |
72000 |
Total costs |
42,000 |
48000 |
Variable Costs |
40 % of sales revenue |
50% |
Required:
- Calculate the Break Even Point (BEP) in dollars of product for each company.
- Calculate the percentage margin of safety for each company.
- If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart.
I Would like more info on point number 3 with the break even chart
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