Halifax Products Sells a Product for $75

question 115

Essay

Halifax Products sells a product for $75.Variable costs per unit are $50,and monthly fixed costs are $75,000.Answer the following questions:
a.What is the break-even point in units?
b.How many units would need to be sold to earn a target profit of $200,000?
c.Assuming they achieve the level of sales required in part b,what is the margin of safety in sales dollars?

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