XYZ Company sold 30,000 units last month and sales totaled $1,500,000 USD. Total variable monthly expenses were $600,000 and fixed monthly expenses were $500,000.
1. What is the company's break even point in terms of revenue?
2. What is the margin of saftey?
3. The company purchased a piece of equipment that increased variable expenses by $10 per unit, increased fixed monthly fixed expenses by $100,000, and increased units sold by 20%. Calculate the impact on net operating income. Which of the following most accurately reflects that new net operating income?
4. What percentage increase in sales would result in no additional loss and no additional income making the change income neutral?
5. Based on the previous information (new purchased equipment & resulting increased costs),what would the margin of safety be at 50,000 units in sales