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A Firm Provides the Following Sales Data Required:
(A) Calculate the Break-Even Point in Dollar Sales

question 190

Essay

A firm provides the following sales data:
 Expected unit sales.. 5,000 Unit variable cost..... $10 Unit selling price... $16 Total fixed cost....... $12,000\begin{array} { l r r r } \text { Expected unit sales.. } & 5,000 & \text { Unit variable cost..... } & \$ 10 \\\text { Unit selling price... } & \$ 16 & \text { Total fixed cost....... } & \$ 12,000\end{array}
Required:
(a) Calculate the break-even point in dollar sales.
(b) Calculate the margin of safety in dollar sales.


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