Reference no: EM132837242

Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows:

Sales...................................$540,000

Variable expenses...............360,000

Contribution margin...........180,000

Fixed expenses...................120,000

Net operating income.........$60,000

The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories.

Required:

Problem a Given the present situation, compute

1 The break-even sales in kilograms.

2 The break-even sales in dollars.

3 The sales in kilograms that would be required to produce net operating income of $90,000.

4 The margin of safety in dollars.