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What is the breakeven level in batteries

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Reference no: EM132565553

XMobile Company sells car batteries to service stations for an average of $85 each. The variable cost of each battery is $48 and monthly fixed selling costs total $6,000. Other monthly fixed costs of the company total $7,000.

Required:

Question a. What is the breakeven point in batteries?

Question b. What is the margin of safety, assuming sales total $32,000?

Question c. What is the breakeven level in batteries, assuming variable costs increase by 20%?

Question d. What is the breakeven level in batteries, assuming the selling price goes up by 10%, fixed selling costs decline by 10%, and other fixed costs decline by $1,000?

Reference no: EM132565553

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