Question

nu vastu 2. Jordan Graft Images sells framed prints of various college landmarks. Jordan purchases the prints from his supplier for $30 and sells them through his website for $65. Jordan's fixed expenses are $89,250. What is Jordan's breakeven point? A. 940 units B. 1373 units C. $165,750 D. $2,550 3. Deaton, Inc. sells computer backpacks. The company purchases the backpacks from its supplier for $15 and sells them to office supply stores for $25. Deaton's fixed expenses are $100,000. The company current sales revenue is $375,000. What is the Deaton's margin of safety? A $250,000 B. $125,000 C. 125,000 units D. 10,000 units The Dave

Answer 1

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Statementshowing Computations
Paticulars	Amount
Q2 C $165,750
Sales price per unit	65.00
Variable cost per unit	30.00
Contribution per unit	35.00
Fixed costs	89,250.00
Break even point in units =89,250/35	2,550.00
Break even point in $= 2550*65	165,750.00
Q3 B $125,000
Sales price per unit	25.00
Variable cost per unit	15.00
Contribution per unit	10.00
Fixed costs	100,000.00
Break even point in units =100,000/10	10,000.00
Break even point in $= 10,000*25	250,000.00
Margin of Safety = 375,000 - 250,000	125,000.00