Solved: Current operating income for bay area cycles co is 54000, Accounting Basics

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Current operating income for bay area cycles co is 54000

Question - Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000.

Required:

1. Calculate Bay Area Cycle's break-even point in units and total sales dollars.

2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio.

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Accounting Basics: Current operating income for bay area cycles co is 54000

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Accounting Basics: Current operating income for bay area cycles co is 54000

Reference No:- TGS02877607

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