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XYZ Company is considering the manufacture of a new toy. Each toy would sell for $5 and would require $2.00 in variable costs. In addition, annual fixed costs associated with the project would total $84,000. Calculate: (a) the breakeven point in units, (b) the breakeven point in dollars, (c) the profit or loss if 34,000 toys were sold, (d) the margin of safety if 34,000 toys were budgeted to be sold (e) the number of toys that must be sold to earn a profit of $90,000, and (f) the profit if total revenue is $200,000. (g) What is the contribution ratio? (h) What is the breakeven point in dollars?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92039490

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