Calculate break-even units and the break-even sales revenue

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Reference no: EM13949761

Cherron Company budgeted the following per-unit information for the coming year:

Price $24.00
Direct materials 5.60
Direct labor 7.50
Variable overhead 2.90
Variable selling expense 2.00

Total fixed expense was $75,000. In the coming year, Cherron Company expects to sell 14,000 units.

Required

1. Calculate the break-even units and the break-even sales revenue.

2. Calculate the margin of safety in sales dollars.

3. Calculate the margin of safety in units.

Reference no: EM13949761

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