Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. chapter 7-breakeven in dollars south company sells

Chapter 7-Breakeven in Dollars South Company sells multiple products. Sales are $45,000, variable expenses are...

70.2K

Verified Solution

Question

Accounting

image
Chapter 7-Breakeven in Dollars South Company sells multiple products. Sales are $45,000, variable expenses are 65% of sales, and fixed expenses total $10,500. a) What is their breakeven point in sales dollars? b) How much sales in dollars do they need to make a profit of $20,000? c) What's the margin of safety percentage based on your answer to part b? d) Refer back to the original data. If they advertise, they believe they can double their sales. What is the most they can spend on advertising and still make a profit of $20,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students