Martin Company currently sells its products for $220 per unit. Management is contemplating a 20%...
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Accounting
Martin Company currently sells its products for $220 per unit. Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $90,000 per year. If fixed costs increase 10% next year, and the new seling price per unit goes into effect, how many units will need to be sold to breakeven? A. 281 units B. 1,125 units C. 99,000 units D. 563 units Sue sells authentic Amish quilts on her website. Suppose Sue expects to sell 3,000 quilts during the coming year. Her average sales price per quilt is $275, and her average cost per quilt is $150. Her foxed expenses fotal $225,000. Compute her margin of safety a. in units (quilts). b. in sales dollars. c. as a percentage of expected sales. a. Compute her margin of safety in units (quilts). Begin by determining the formula, then compute the margin of safety in units (quilts). b. Compute her margin of safety in sales dollars. Begin by determining the formula, then compute Sue's margin of safety in sales doliars. - c. Compute her margin of safety as a percentage of expected sales. (Round the percentage to the nearest hundredth percent, Xx% ) Begin by determining the formula, then compute Sue's margin of safoty as a percentage of sales


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