Home / Questions / C a E22-13 Glacial Company estimates that variable costs will be 62.5% of sales, and fixed...
C a E22-13 Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000. The selling price of the product is $4. Instructions (a) Prepare a CVP graph, assuming maximum sales of $3,200,000. (Note: Use $400,000 increments for sales and costs and 100,000 increments for units.) (b) Compute the break-even point in (1) units and (2) dollars. (c) Assuming actual sales are $2 million, compute the margin of safety in (1) dollars and (2) as a ratio.
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