Calculate the sales required in dollars to earn a pro?t

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Problem - Opal Ltd manufactures and sells a single product, a wireless doorbell for $50 per unit. Variable costs are $30 per unit and total ?xed costs for the current period (2019) are $40,000.

Required -

a) Calculate the break-even point in units AND in dollars for Opal Ltd. Show all workings.

b) Calculate the Margin of Safety in dollars assuming actual sales are $135,000. Show your workings. Brie?y comment on your ?ndings regarding Opal Ltd's margin of safety.

c) Calculate the sales required in dollars to earn a pro?t after tax of $15,000. Assume the tax rate is 30%. Show all workings.

Reference no: EM132982279

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