Calculate break even point in dollars for katie corporation, Accounting Basics

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Calculate break even point in dollars for katie corporation

Problem

The Katie Corporation has budgeted fixed costs of $125,000 and an estimated selling price of $16.50 per unit. The contribution margin ratio is 40% and the company plans to sell 25,000 units in 2011.

(a) compute the break even point in dollars

(b) Compute the margin of safety for 2011

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Accounting Basics: Calculate break even point in dollars for katie corporation

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