Determine YUXs monthly break-even point in units

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Reference no: EM132846475

Problem - YUX Corporation sells a single product for $50. Its management estimates the following revenues and costs for the year 2020:

Net sales

$505,000

Selling expenses-variable

$21,100

Direct materials

193,500

Selling expenses-fixed

18,000

Direct labour

57,600

Administrative expenses-variable

9,800

Manufacturing overhead-variable

21,000

Administrative expenses-fixed

10,100

Manufacturing overhead-fixed

10,060

 

 

Required -

1. Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units.

2. Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit.

Reference no: EM132846475

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