FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
ABC Company is the exclusive Montana distributor of lawn mowers for a small manufacturing company. It sells only one model at $600 per unit and for which ABC pays $250. ABC's other variable costs amount to $50 per unit. Fixed costs are $2,000. In April, ABC sold 15 lawn mowers and it sold 20 in May.
Required:
Calculate the following values:
- Monthly break-even point in sales dollars
- Monthly break-even point in units
- Monthly income for April
- Monthly income for May
- Margin of safety for April
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