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In: Accounting

Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 3,050,000 pages at...

Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 3,050,000 pages at a price of $0.1 each in the coming year. Product costs include:

  Direct materials $0.015  
  Direct labor $0.005  
  Variable overhead $0.002  
  Total fixed overhead $165,480

There is no variable selling expense; fixed selling and administrative expenses total $42,000.

1. Calculate the break-even point in units.
units

2. Calculate the break-even point in sales revenue.
$

3. Calculate the margin of safety in units for the coming year.
units

4. Calculate the margin of safety in sales revenue for the coming year.
$

5. What if the total selling and administrative expenses are reduced to $18,600? Recalculate the following:

a. Break-even point in units units
b. Break-even point in sales revenue $
c. Margin of safety in units for the coming year units
d. Margin of safety in sales revenue for the coming year $

Solutions

Expert Solution

ANSWER TO THE QUESTION WHEN SELLING EXPENSE REDUCED TO $ 18600/-

PLEASE COMMENT IF YOU NEED FURTHER WORKINGS OR FOR CONCEPTUAL CLARITY

ekkarill92 answered 3 years ago
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