The margin of safety assuming actual sales

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Reference no: EM13322364

Zootsuit Inc. makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and variable costs to be $42 per unit. Compute the following: (a) break-even point in dollars using the contribution margin (CM) ratio; (b) the margin of safety assuming actual sales are $1,382,400; and (c) the sales dollars required to earn net income of $410,000.

Reference no: EM13322364

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The margin of safety assuming actual sales : Zootsuit Inc. makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and variable costs to be $42 per unit. Compute the following: (a) break-even point in dollars using the contribution ..

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