Mathias Corporation manufactures and sells wire rakes. The rakes sell for $16 each. Information about the company’s costs is as follows:
Variable manufacturing cost per unit | $8 |
Variable selling and administrative cost per unit | 4 |
Fixed manufacturing overhead per month | $150,000 |
Fixed selling and administrative cost per month. | 350,000 |
a. Determine the company’s monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $100,000.
c. Compute the company’s margin of safety if its current monthly sales level is $3,800,000.
d. Estimate the amount by which monthly operating income will increase if the company anticipates a $200,000 increase in monthly sales volume.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.