Dental Comfort Services provides dental cleanings to its patients.The selling price of a cleaning is $150 and the variable costs associated are $85.The monthly relevant fixed costs are $10,000.
Required:
a.What is the breakeven point in cleanings?
b.What is the margin of safety in dollars,assuming sales total $30,000?
c.What is the breakeven level in cleanings,assuming variable costs decrease by 20%?
d.What is the breakeven level in dollars,assuming the selling price goes down by 10% and fixed costs

Question

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The Answer of Dental Comfort Services provides dental cleanings to its patients.The selling price of a cleaning is $150 and the variable costs associated are $85.The monthly relevant fixed costs are $10,000.
Required:
a.What is the breakeven point in cleanings?
b.What is the margin of safety in dollars,assuming sales total $30,000?
c.What is the breakeven level in cleanings,assuming variable costs decrease by 20%?
d.What is the breakeven level in dollars,assuming the selling price goes down by 10% and fixed costs

Dental Comfort Services Provides Dental Cleanings to Its Patients