Compute the margin of safety in both dollars and sales

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Reference no: EM132587803

The following information were taken from B.B, Company ;

Sales Revenue (30,000 units) $ 1,200,000

Total Variable costs $ 900,000

Total Fixed Costs $ 100,000

Required :

Question 1: Compute the company's Contribution Margin ratio and variable cost ratio

Question 2: Compute BEP in units and Dollars

Question 3: If the sales increase by $ 200,000, compute the expected increase in Contribution Margin

Question 4: If the target profit $120,000, compute unit sales to attaint the target profit

Question 5: Compute the margin of Safety in both dollars and percentage form

Reference no: EM132587803

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