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Compute break-even sales using the contribution margin ratio

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Question - Asili Living Co is a Canadian company famous for its all-natural handcrafted toxin-free skin and bath line. The company's top product, anti-aging face serum sells for $29 each. For the coming year, management expects fixed costs to be $315,700. Variable costs are $21.80 per unit.

Required -

(a) Compute break-even sales using the contribution margin ratio.

(b) Compute margin of safety ratio assuming actual sales are $1,950,200.

(c) Compute the sales required to earn net income of $260,000, using the mathematical equation.

Reference no: EM133119278

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