McKenzie Company expects to produce and sell 1000 units next month.Data on costs follows: $\begin{array}{lc}
\text { Per unit costs: } & \
\text { Selling price } & \$ 8 \
\text { Variable manufacturing costs } & \$ 2.75 \
\text { Variable selling costs } & \$ 0.25\\\text { Total costs: }\\text { Fixed manufacturing costs }&\$1,000\\text { Fixed selling costs }&\$125
\end{array}$ A. What is the break-even point in units?
B. What is the break-even point in sales dollars?
C. What is the expected operating income for next month?
D. What is the margin of safety in dollars?
E. What is the break-even point in units if fixed manufacturing costs increase by $ \$ 500 $ ?
F. What is the break-even point in units if variable manufacturing costs decrease by $ \$ 0.75 $ ?

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The Answer of McKenzie Company expects to produce and sell 1000 units next month.Data on costs follows: $\begin{array}{lc}
\text { Per unit costs: } & \
\text { Selling price } & \$ 8 \
\text { Variable manufacturing costs } & \$ 2.75 \
\text { Variable selling costs } & \$ 0.25\\\text { Total costs: }\\text { Fixed manufacturing costs }&\$1,000\\text { Fixed selling costs }&\$125
\end{array}$ A. What is the break-even point in units?
B. What is the break-even point in sales dollars?
C. What is the expected operating income for next month?
D. What is the margin of safety in dollars?
E. What is the break-even point in units if fixed manufacturing costs increase by $ \$ 500 $ ?
F. What is the break-even point in units if variable manufacturing costs decrease by $ \$ 0.75 $ ?

McKenzie Company Expects to Produce and Sell 1000 Units Next