Stewart Company sells a single product. The product has a selling price of $50 per
unit and variable expenses of 80% of sales. If the company's fixed expenses total
$150,000 per year, then it will have a break-even of:
The following is Carter Corporation's contribution format income statement for last
Less variable expenses
Less fixed expenses
The company has no beginning or ending inventories. A total of 80,000 units were
produced and sold last month.
What is the company's break-even in units?
Refer to the previous question.
What is the company's margin of safety in dollars?
Gorham Gaslight Inc. has the following product information:
Sales price $ 4.50 per unit
Variable costs $ 3.25 per unit
Fixed Costs $ 5,000
Units sold 20,000
What is the effect on net income if 2,000 more units are sold?