Question

Keller Company estimates that variable costs will be 60% of sales and fixed costs will total $1,920,000. The selling price of the product is $10, and 600,000 units will be sold.
Instructions
(a) Compute the break-even point in units and dollars
(b) Compute the margin of safety in dollars and as a ratio

Answer 1

I think the break-even point is -0.53 units??

Answer 2

http://www.calculatorpro.com/break-even-calculator/

Answer 3

is it correct?

Answer 4

I really don' t know how to do this but Sarkar is really good at this type of stuff and if you msg him I know he'll be able to help :) I'm really sorry

Answer 5

Thats ok becca..at least u give it a shot..where do i find Sarkar?

Answer 6

Umm well If you just go to your create a message thing and type his name in the box it'll send him the msg and he'll probably be on in the morning :)

Answer 7

oh ok. ill do that..but I am actualy taking the mid-term right now LOL

Answer 8

oh nooo I'm sorry hold on and let me see if I can find someone to help you!

Answer 9

o thats would be awesome

Answer 10

okay I just asked DumbCow and he said he'll take a look!

Answer 11

thanks becca

Answer 12

np :)

Answer 13

nice calculator
anyway to break even you need--> total revenue = total costs
revenue = price*quantity
costs = fixed cost + variable costs(based on units sold)

Let x be units sold
revenue = 10x
costs = $1.92 million + 60% revenue = 1.92 million + 6x

break even
10x = 1.92 million +6x
x = 480,000

Answer 14

not sure about margin of safety, i would have to look that up

Answer 15

your awesome!!!

Answer 16

glad to help