Keith Miller Inc. ,sells car batteries to service stations for an average of $30 each.The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10 000.Other monthly fixed costs of the company total $8000.
Required:
a.What is the break-even point in batteries?
b.What is the margin of safety,assuming sales total $55 000?
c.What is the break-even level in batteries,assuming variable costs increase by 20%?
d.What is the break-even level in batteries,assuming the selling price goes up by 10%,fixed manufacturing costs decline by 10%,and other fixed costs decline by $1400?
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Question

Quizplus · Accepted Answer

The Answer of Keith Miller Inc. ,sells car batteries to service stations for an average of $30 each.The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10 000.Other monthly fixed costs of the company total $8000.
Required:
a.What is the break-even point in batteries?
b.What is the margin of safety,assuming sales total $55 000?
c.What is the break-even level in batteries,assuming variable costs increase by 20%?
d.What is the break-even level in batteries,assuming the selling price goes up by 10%,fixed manufacturing costs decline by 10%,and other fixed costs decline by $1400?
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