Break -even point
October 1st, 2022
Tboy produces only one type of product.
The budget for the year is as follows:
Selling price per unit $25
Variable Cost per unit $8
Total Fixed Costs $210,000
Budgeted profit $300,000
Required
? Calculate the break even point in dales volume and the margin of safety in sales revenue for the budgeted figures.
? From the information, calculate by what percentage the selling price needs to change in order for a profit of $240,00 to be earned.