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  3. in the month of june, bedford company sold 350 wid

In the month of June, Bedford Company sold 350 widgets. The average sales price was...

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Question

Accounting

In the month of June, Bedford Company sold 350 widgets. The average sales price was $34. During the month, fixed costs were $6,320 and variable costs were 40% of sales.

Instructions

A. Determine the contribution margin in dollars, per unit, and as a ratio.

B. Compute the break-even point in units and dollars.

C. How much can sales decline before Bedford Company experiences a loss? (hint: compute margin of safety)

D. What would be the sales dollars and number of units sold if Bedford Company

wishes to have a target profit of $4,000.

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