Glacial company estimates that variable costs will be 70

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Glacial Company estimates that variable costs will be 70% of sales, and fixed costs will total $711,750. The selling price of the product is $5.

Compute the break-even point in (1) units and (2) dollars.

(1)

 

Break-even sales

 

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 units

(2)

 

Break-even sales

 

$https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

 

Compute the margin of safety in (1) dollars and (2) as a ratio, assuming actual sales are $3,003,165. (Round ratio to 0 decimal places, e.g. 20%.) 

(1)

 

Margin of safety

 

$https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

 

(2)

 

Margin of safety ratio

 

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 %

Reference no: EM13987510

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