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A Firm Provides the Following Sales Data Required:
A

question 127

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.


Definitions:

Demand Graphs

Visual representations used to show the relationship between the price of a good and the quantity demanded over a certain period.

Weekend Demand

The level of consumer need or interest for products or services during the weekend period.

Price Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers based on their willingness to pay.

Total Rounds

The complete number of cycles or sequences in a process or activity.

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