Happy Feet hiking socks cost $6 per pair which are then sold for $10 per pair.Monthly fixed costs are $18,000; current sales are 12,000 pairs per month.
a.Compute the breakeven sales in units.
b.Compute ABC's margin of safety in units and sales dollars.
c.Compute ABC's margin of safety as a percentage.
d.Compute ABC's operating leverage factor.
e.Compute ABC's % of operating income decline if sales fall by 20%.

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The Answer of  Happy Feet hiking socks cost $6 per pair which are then sold for $10 per pair.Monthly fixed costs are $18,000; current sales are 12,000 pairs per month.
a.Compute the breakeven sales in units.
b.Compute ABC's margin of safety in units and sales dollars.
c.Compute ABC's margin of safety as a percentage.
d.Compute ABC's operating leverage factor.
e.Compute ABC's % of operating income decline if sales fall by 20%.

Happy Feet Hiking Socks Cost $6 Per Pair Which Are