Exercise 5
Magnolia Company is considering the production and sale of a new
product with the following sales and cost data: unit sales price,
$350; unit variable costs, $180; total fixed costs, $399,500; and
projected sales, $910,000. Round your answers to the nearest whole
unit or dollar.
(a) Calculate break-even in units.
(b) Calculate break-even in dollars (use four decimal places when
calculating the contribution margin ratio).
(c) Calculate number of units that would need to be sold to
generate...