Calculate breakeven point margin of safety breakeven

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Reference no: EM13356024

Calculate breakeven point, margin of safety, breakeven level.

Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000.

Required:

a) What is the breakeven point in batteries?

b) What is the margin of safety, assuming sales total $60,000?

c) What is the breakeven level in batteries, assuming variable costs increase by 20%?

d) What is the breakeven level in batteries, assuming the selling price goes up by 10%, decline by 10%, and other fixed costs decline by $100?

Reference no: EM13356024

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