Modern home appliances company places before you the following trading results:
Year Sales Net Income
2008 $50,000 $5,000
2009 $60000 $9000
Calculate the following:
(a) Contribution margin ratio,
(b) Fixed cost,
(c) Variable cost during two years,
(d) Break even point in dollars, and
(e) Margin of safety for 2008 and 2009.
(Ignore tax)© BrainMass Inc. brainmass.com October 10, 2019, 4:51 am ad1c9bdddf
BEP and Margin of safety problems are examined.