Halifax Products sells a product for $75. Variable costs per unit are $50, and monthly fixed costs are $75,000. Answer the following questions:
a. What is the break-even point in units?
b. How many units would need to be sold to earn a target profit of $200,000?
c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars?

Question

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The Answer of Halifax Products sells a product for $75. Variable costs per unit are $50, and monthly fixed costs are $75,000. Answer the following questions:
a. What is the break-even point in units?
b. How many units would need to be sold to earn a target profit of $200,000?
c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars?

Halifax Products Sells a Product for $75