Question - Presto Company makes radios that sell for $26 each. For the coming year, management expects fixed costs to total $228,000 and variable costs to be $16.64 per unit.
Compute the break-even point in dollars using the contribution margin (CM) ratio.
Compute the margin of safety ratio assuming actual sales are $811,000.
Compute the sales dollars required to earn net income of $69,648.