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Dallas Inc

question 81

Essay

Dallas Inc.sells a product for $60.Variable costs are 60% of sales,and monthly fixed costs are $54,000.Answer the following questions:
a.What is the break-even point in units?
b.What unit sales would be required to earn a target profit of $120,000?
c.Assume they achieve the level of sales required in part b,what is the margin of safety in sales dollars?


Definitions:

Incorporated

The process by which a business is legally declared a corporate entity, separate from its owners.

Piercing The Veil

A legal concept that allows courts to hold shareholders or members of a corporation personally liable for the corporation's actions or debts under certain circumstances.

Nonprofit Corporation

An organization established for purposes other than making a profit, which typically benefits the public, a specific group of individuals, or the membership of the nonprofit.

Church Donations

Contributions made by individuals or entities to a church, which can be monetary or in the form of goods and services.

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