Maya Block manufactures a standard stone block for the building industry. The production capacity 120,000...
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Accounting
Maya Block manufactures a standard stone block for the building industry. The production capacity 120,000 standard blocks per year. The selling price per block is $1.80, variable costs are $0.50 per brick and fixed costs are $50,000 per year. Determine the following:
1. The break-even point in terms of output.
2. The margin of safety if sales amount to 90,000 bricks in the year. Formula: Margin of safety = actual sales break-even sales
3. Is the firm profitable?
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