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Compute the break-even point in units and dollars

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Reference no: EM132536384

Question - AD Company estimates that variable costs will be 70% of sales and fixed costs will total $1,800,000. The selling price of the product is $10, and 700,000 units will be sold.

Instructions - Using the mathematical equation

(a) Compute the break-even point in units and dollars.

(b) Compute the margin of safety in dollars and as a ratio.

(c) Compute net income.

Reference no: EM132536384

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