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Q1) Alex Miller, Inc., sells car batteries to service stations for an average of $30 each.  The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000.  Other monthly fixed costs of the company total $8,000.

problems:

a) Compute the breakeven point in batteries?

b) find out the margin of safety, assuming sales total $60,000?

c) Determine the breakeven level in batteries, assuming variable costs increase by 20%?

d) compute the breakeven level in batteries, assuming the selling price goes up by 10%, decline by 10%, and other fixed costs decline by $100?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M919020

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