The following data pertain to Epsom Corporation's operations:
-The break-even level in sales dollars is:

Question

The following data pertain to Epsom Corporation's operations: 
-The break-even level in sales dollars is:

Quizplus · Accepted Answer

Total sales = $25 per unit F1F1F1S1F1F1F10 12,000 units = $300,000
Margin of safety percentage = Margin of safety in dollars F1F1F1S1F1F1F10 Total budgeted (or actual)sales
0.30 = Margin of safety in dollars F1F1F1S1F1F1F10 $300,000
Margin of safety in dollars = 0.30 F1F1F1S1F1F1F10 $300,000 = $90,000
Margin of safety in dollars = Total budgeted (or actual)sales - Break-even sales
$90,000 = $300,000 - Break-even sales
Breakeven sales = $300,000 - $90,000 = $210,000

The Following Data Pertain to Epsom Corporation's Operations