Reference no: EM133117929

Question - Glass by Jo Inc. is a small business located in the heart of Ontario. The company is owned by the skilled glass designer who uses the technique of glass fusing to create beautiful jewelries, wall decors and ornaments. For the fiscal year ended December 31, 2020 the company produced and sold 148,320 units of product and presented the following additional information about its products:

Sales price $37.00 per unit Fixed cost of goods sold $45,000

Variable cost of goods sold $17.40 per unit Fixed selling expense $63,000

Variable selling expense 26% of sales price Fixed administrative expense $78,500

Variable administrative expenses $8.20 per unit

Required -

a) Prepare a cost-volume-profit income statement using the contribution margin format for Glass by Jo Inc. for the fiscal 2020.

b) By using the contribution margin technique, compute the company's break-even point in units in fiscal 2020.

c) Compute the company's margin of safety in dollars in fiscal 2020?