A firm provides the following sales data: $$\begin{array} { l r l r }
\text { Expected unit sales } & 5,000 & \text { Unit variable cost } & \$ 10 \
\text { Unit selling price } & \$ 16 & \text { Total fixed cost } & \$ 12,000
\end{array}$$
Required:
(a) Calculate the break-even point in dollar sales.
(b) Calculate the margin of safety in dollar sales.

Question

A firm provides the following sales data: $$\begin{array} { l r l r } 
\text { Expected unit sales } & 5,000 & \text { Unit variable cost } & \$ 10 \
\text { Unit selling price } & \$ 16 & \text { Total fixed cost } & \$ 12,000
\end{array}$$
Required:
(a) Calculate the break-even point in dollar sales.
(b) Calculate the margin of safety in dollar sales.

Quizplus · Accepted Answer

The Answer of A firm provides the following sales data: $$\begin{array} { l r l r } 
\text { Expected unit sales } & 5,000 & \text { Unit variable cost } & \$ 10 \
\text { Unit selling price } & \$ 16 & \text { Total fixed cost } & \$ 12,000
\end{array}$$
Required:
(a) Calculate the break-even point in dollar sales.
(b) Calculate the margin of safety in dollar sales.

A Firm Provides the Following Sales Data Required: (A) Calculate the Break-Even Point in Dollar Sales

A Firm Provides the Following Sales Data Required:
(A) Calculate the Break-Even Point in Dollar Sales