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Homework Inc. sells special boxes of Chocolates to wealthy clients for an average of $55 each. The variable costs of each chocolate box are $28 and monthly fixed manufacturing costs total $16,000. Other monthly fixed costs of the company total $13,500. Required:
Question 1: What is the break-even level in boxes of chocolates?
Question 2: What is the margin of safety assuming sales total $132,000?
Question 3: What is the break-even level in chocolate boxes assuming variable costs increase by 25 percent?
Question 4: ?What is the break-even level in chocolate boxes assuming the selling price goes up by 15 percent, fixed manufacturing costs decline by 12 percent and other fixed costs decline by $140?
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