3/30/2016 8:25:29 AM
The given task that is belong to break-even point articulated in terms of total sales dollars and sales volume
CVP analysis-what-if questions; breakeven Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenditures are $9 per unit, and fixed expenses total $27,000 per month.
Needed data:
(Unless or else stated, consider each requirement separately.)
a. Determine the break-even point articulated in terms of total sales dollars and sales volume.
b. Compute the margin of safety and the margin of safety ratio. Suppose current sales are $75,000.
c. Estimate the monthly operating income (or loss) at a sales volume of 5,400 units per month.