Summer Co. has a unit selling price of $500, variable cost per unit $300, and fixed costs of $190,000. Compute the break-even point in units and in sales dollars.
Summer Co. reported actual sales of $2,000,000, and fixed costs of $450,000. The contribution margin ratio is 25%. Compute the margin of safety in dollars and the margin of safety ratio.
At the high level of activity in October, 7,000 machine hours were run and power costs were $18,000. in March, a month of low activity, 2,000 machine hours were run and power costs amounted to $9,000. Using the high-low method, the estimated fixed cost element of power costs is: