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Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro5. What if the total selling and administrative expenses are reduced to $20,900? Recalculate the following: a. Break-even poi

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Answer #1

1) Break even unit = 122670/(0.06-0.013) = 2610000

2) Break even sales = 2610000*.06 = $156600

3) Margin of safety = 2920000-2610000 = 310000 Unit

4) Margin of safety revenue = 310000*.06 = 18600

5) Break even unit = 108570/.047 = 2310000

Break even sales = 2310000*.06 = 138600

Margin of safety unit = 2920000-2310000 = 610000

Margin of safety sales = 610000*.06 = $36600

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