Casey’s Cases sells cell phone cases in a mall kiosk. Casey charges $42 per case. The variable cost for a case, including the case, the royalty paid to the mall, and so on is $32. The monthly fixed cost for Casey’s Cases is $3,250.   Required: How many cases must Casey sell every month to break even? Casey believes that he can sell 385 cases a month. What is the margin of safety in terms of the number of cases?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Casey’s Cases sells cell phone cases in a mall kiosk. Casey charges $42 per case. The variable cost for a case, including the case, the royalty paid to the mall, and so on is $32. The monthly fixed cost for Casey’s Cases is $3,250.

 

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  1. How many cases must Casey sell every month to break even?
  2. Casey believes that he can sell 385 cases a month. What is the margin of safety in terms of the number of cases?
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