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Compute the break-even point in units and dollars

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Question - Glacial Company estimates that the variable costs will be 62.5% of sales, and fixed costs will total $600,000. The selling price of the product is $4.

(a) What would a CVP graph look like, assuming maximum sales of $3,200,000.

(b) Compute the break-even point in (1) units and (2) dollars.

(c) Assuming actual sales are $2 million, compute the margin of safety in (1) dollars and (2) as a ratio.

Reference no: EM132933274

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