Thad morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the western hombre brand of cycle that was popular in the 1930s. the retro-look cycle would be sold for $15,000 and at that price, thad estimates 300 units would be sold each year. the variable cost to produce and sell the cycles would be $11,250 per unit. the annual fixed
cost would be $1,012,500.
what is the break-even in unit sales?
what is the margin of safety in dollars (omit the "$" sign in your response.)

Instructions are listed below

Explanation:

Giving the following information:

Price= $15000

Q=300

The variable cost to produce and sell the cycles would be $11,250 per unit.

The annual fixed cost would be $1,012,500.

A)break-even point in units=fixed costs/contribution margin= 1012500/(15000-11250)= 270 units

B) margin of safety= budgeted sales - break-even sales

Margin of safety= 4500000-4050000= $450000

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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explanation: