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Meriden Company has a unit selling price of $790, variable costs per unit of $39

ID: 2507909 • Letter: M

Question

Meriden Company has a unit selling price of $790, variable costs per unit of $395, and fixed costs of $243,320.

Compute the break-even point in units using the mathematical equation.



For Turgo Company, variable costs are 60% of sales, and fixed costs are $177,500. Management

Meriden Company has a unit selling price of $790, variable costs per unit of $395, and fixed costs of $243,320. Compute the break-even point in units using the mathematical equation. For Turgo Company, variable costs are 60% of sales, and fixed costs are $177,500. Management's net income goal is $68,580. Compute the required sales in dollars needed to achieve management's target net income of $68,580. For Kozy Company, actual sales are $1,259,000 and break-even sales are $780,580. Compute the margin of safety in dollars and the margin of safety ratio. Montana Company produces basketballs. It incurred the following costs during the year. What are the total product costs for the company under variable costing?

Explanation / Answer

Meriden Company has a unit selling price of $790, variable costs per unit of $395, and fixed costs of $243,320.

Compute the break-even point in units using the mathematical equation.

Break even point = 243,320/(790-395) = 616

616*790 = 486,640

Answer: Break even in units = 616 units, break even in sales dollars = $486,640

For Turgo Company, variable costs are 60% of sales, and fixed costs are $177,500. Management