Solved

Halifax Products Sells a Product for $75

Question 112

Essay

Halifax Products sells a product for $75.Variable costs per unit are $50,and monthly fixed costs are $75,000.Answer the following questions:
a.What is the break-even point in units?
b.How many units would need to be sold to earn a target profit of $200,000?
c.Assuming they achieve the level of sales required in part b,what is the margin of safety in sales dollars?

Correct Answer:

verifed

Verified

a.3,000 units = $75,000/($75 - $50)
b.11...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents