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What is the breakeven point in number of car seats

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Reference no: EM132822769

Question - Julia Child Company sells baby car seats to retailers for an average of $80 each. The variable cost of each car seat is $50 and monthly fixed selling costs total $8,000. Other monthly fixed costs of the company total $7,500.

Required -

1. What is the breakeven point in number of car seats?

2. What is the margin of safety, assuming sales total $44,000?

3. What is the breakeven level in car seats, assuming variable costs increase by 12%?

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

Reference no: EM132822769

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