Problem
The Katie 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 2011.
(a) compute the break even point in dollars
(b) Compute the margin of safety for 2011
(c) Compute the expected operating profit for 2011.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.