The Cornish Corporation has budgeted fixed costs of $125,000 and an estimated selling price of $16.50 per unit.
The contribution margin ratio is 40% and the company plans to sell 25,000 units in 2021.
(a) Compute the break-even point in dollars.
(b) Compute the margin of safety for 2021.
(c) Compute the expected operating profit for 2021.
Given, Budgeted Fixed Costs = $125,000 Selling Price = $16.50 Contribution margin = 40% Contribution per unit => 40% of... View the full answer