What will be his margin of safety

Reference no: EM133017259

a) Ravi makes and retails only one product, photo frames. She buys the wooden frames in bulk for $3 each and it costs another $1 to add cool designs to the product. Last year, Ravi sold 2,000 frames for $12 a piece. She paid $300 a month to rent a sales booth at his local outdoor market, along with a sales commission of $1 per frame sold (her sister made all the sales on commission).

Complete Ravi's Frames' contribution income statement.

b) Ravi is wondering what his break-even point is. Calculate both the break-even revenue and sales volume.

c) Next year, Ravi is planning to sell 3,000 frames. What will be his margin of safety?

Reference no: EM133017259

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