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Construct a cost-volume-profit chart

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Reference no: EM132881617

Problem - Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of the year. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. It is expected that 60,000 units will be sold at a price of $20 per unit. Maximum sales within the relevant range are 70,000 units.

What is (a) the contribution margin ratio and (b) the unit contribution margin?

Determine the break-even point in units.

Construct a cost-volume-profit chart, indicating the break-even point.

Construct a profit-volume chart, indicating the break-even point.

What is the margin of safety?

Reference no: EM132881617

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