Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro - 15963

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $3.00
  • From: Business,
  • Posted on: Wed 27 Mar, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

 

Cornerstone Exercise 16.6
Break-Even Units and Sales Revenue: Margin of Safety

Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,800,000 pages at a price of $0.08 each in the coming year. Product costs include:

There is no variable selling expense; fixed selling and administrative expenses total $46,000.

Required:

Note: In your computations that involve the contribution margin ratio, round the ratio to two decimal places.

1. Calculate the break-even point in units.

2. Calculate the break-even point in sales revenue.

3. Calculate the margin of safety in units for the coming year.

4. Calculate the margin of safety in sales revenue for the coming year.
$

5. What if the total selling and administrative expenses are reduced to $38,800? Recalculate the following:

a.  Break-even point in units

   

b.  Break-even point in sales revenue

 

 

c.  Margin of safety in units for the coming year

   

d.  Margin of safety in sales revenue for the coming year

   

 

Solution Description

Please downloa

Attachments
Exercise 16.6.docx
Exercise 16.6.d...