87 % (308 Review)
Zoot suit Inc. makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and variable costs to be $42 per unit. Compute the following:
(a) break-even point in dollars using the contribution margin (CM) ratio;
(b) the margin of safety assuming actual sales are $1,382,400; and
(c) the sales dollars required to earn net income of $410,000.
Your answer will be ready within 2-4 hrs. Meanwhile, check out other millions of Q&As and Solutions Manual we have in our catalog.