FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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please answer within the format by providing formula the detailed working
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Exhibit 1: Assumptions (Both Products)

Product #1:

Launch-it

Sales price per unit

$ 10.00

Variable costs per unit:

$ 4.00

Monthly volume

240

 

 

Product #2:

Treat-time

Sales price per unit

$ 30.00

Variable costs per unit:

$ 14.00

Monthly volume

160

 

 

Total fixed costs per month

$ 1,500.00

 

 

Target profit per month

$ 8,000.00

 

 

 

Margin of Safety (in $)

 

 

 

Margin of Safety %

 

 

 

Degree of Operating Leverage

 

 

 

Expected % change in operating income (%)

 

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