Break even point

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Reference no: EM13914021

McCallen Company expects to produce and sell 500 units next month. Data on costs follows:

Per unit costs:   

Per unit costs:

 

Selling price

$8    

Variable manufacturing costs

$2.75

Variable selling costs

$0.25

 

 

Total costs:

 

Fixed manufacturing costs

$1,000

Fixed selling costs

$   125

Required:

A.What is the break-even point in units?

B.What is the break-even point in sales dollars?

C.What is the expected operating income for next month?

D.What is the margin of safety in dollars?

E.What is the break-even point in units if fixed manufacturing costs increase by $500?

F.What is the break-even point in units if variable manufacturing costs decrease by $.75?

Reference no: EM13914021

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