What is the company’s break-even point in sales dollars

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Reference no: EM131288755

The Washington Company reported $4,000,000 in sales during the month and incurred variable expenses totaling $2,800,000 and fixed expenses totaling $720.000. A total of 80,000 units were produced and sold last month. The Company has no beginning or ending inventories.

Question:

(a) What is the Company’s total contribution margin and contribution margin per unit?

(b) How many units would the Company have to sell to achieve a desired target profit of $600,000?

(d) What is the Company’s margin of safety in dollars?

Reference no: EM131288755

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