Current operating income for Bay Area Cycles Co. is $46,000. Selling price per unit is...

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Accounting

Current operating income for Bay Area Cycles Co. is $46,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $184,000. Required:

1. Calculate Bay Area Cycles break-even point in units and total sales dollars.

BREAK EVEN UNITS =

BREAK EVEN DOLLARS =

2. Calculate Bay Area Cycles margin of safety and margin of safety ratio.

MARGIN OF SAFETY =

MARGIN OF SAFETY RATIO =

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