Solution-Determine the break-even point in units and sales

Determine the break-even point in units and sales dollars

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Reference no: EM13536231

Sharp Company makes and sells pencil sharpeners. The variable cost of each sharpener is $20. The sharpeners are sold for $30 each. Fixed operating expenses amount to $40,000.

Required

a. Determine the break-even point in units and sales dollars.

b. Determine the sales volume in units and dollars that is required to attain a profit of $12,000. Verify your answer by preparing an income statement using the contribution margin format.

c. Determine the margin of safety between sales required to attain a profit of $12,000 and break-even sales.

Reference no: EM13536231

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Determine the break-even point in units and sales dollars

Reference no: EM13536231

Reference no: EM13536231

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