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Business, 01.01.2020 21:31 proudmarinemom7186

Stuart company estimates that variable costs will be 60% of sales, and fixed costs will total $800,000. 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) compute the margin of safety in
(1) dollars and
(2) as a ratio, assuming actual sales are $2.5 million.

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