Glacial Company estimates that variable costs will be 70% of sales, and fixed costs will total $711,750. The selling price of the product is $5.
Compute the break-even point in (1) units and (2) dollars.
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(1)
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Break-even sales
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units
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(2)
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Break-even sales
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$
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Compute the margin of safety in (1) dollars and (2) as a ratio, assuming actual sales are $3,003,165. (Round ratio to 0 decimal places, e.g. 20%.)
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(1)
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Margin of safety
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$
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(2)
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Margin of safety ratio
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%
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