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How many units must be sold to break-even

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Q1) John Jones wrote a book that has the following cost characteristics:

Selling Price $16.00 per book

Variable cost per unit: Production $4.00

Selling & administrative 2.00

Fixed costs: Production $90,600 per year

Selling & administrative 21,300 per year

How many units must be sold to break-even? Round to two decimal places.

Q2) Assume Blu Skies Co. expects to sell 150 fans next month. The fans sales price is $90, fans variable cost is $40, and the fixed costs per month are $5,000. The margin of safety in terms of sales revenue is?

Reference no: EM132595725

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