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Calculate the break-even point in sales dollars

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Reference no: EM132566413

Question - Rossi Incorporated makes track suits that sell for $50 each. Actual sales are $740,000. Management estimates that fixed costs will total $222,000 and variable costs will be $30 per unit this coming year.

Required -

1. Calculate the break-even point in sales dollars using the contribution margin ratio.

2. Calculate the margin of safety in dollars and the margin of safety ratio.

3. Calculate the sales dollars required to earn an operating income of $171,200.

Reference no: EM132566413

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