FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:

  1. Monthly break-even point in sales dollars
  2. Monthly break-even point in units
  3. Monthly income for April
  4. Monthly income for May
  5. Margin of safety for April

 

 

 

 

 

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