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Determine what is breakeven level in car seats

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Reference no: EM132603561

Julia Child Company sells baby car seats to retailers for an average of $85 each. The variable cost of each car seat is $48 and monthly fixed selling costs total $6,000. Other monthly fixed costs of the company total $7,000.

Required:

Question 1: What is the breakeven point in number of car seats?

Question 2: What is the margin of safety, assuming sales total $32,000?

Question 3: What is the breakeven level in car seats, assuming variable costs increase by 20%?

Question 1: What is the breakeven level in car seats, assuming the selling price goes up by 10%, fixed selling costs decline by 10%, and other fixed costs decline by $1,000?

Reference no: EM132603561

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