Cullumber Company estimates that variable costs will be 70% of sales, and fixed costs will...

50.1K

Verified Solution

Question

Accounting

image Cullumber Company estimates that variable costs will be 70% of sales, and fixed costs will total $468,000. The unit selling price of the product is $5. Compute the break-even point in (1) sales units and (2) sales dollars. (Round per unit calculation to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 5,275.) (1) Break-even point units (2) Break-even point $ eTextbook and Media Assuming actual sales are $2 million, compute the margin of safety (1) in dollars and (2) as a ratio. (1) Margin of safety $ (2) Margin of safety ratio %

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