Smart Co. estimates that variable costs will be 60% of sales and fixed costs $ 800000. The selling price of the product is 40. Required:
a) Prepare a CVP graph, assuming maximum sales of $ 2800000
b) Compute BEP in units and amount of sales
c) Compute margin of safety in amount and percentage ( assume actual sales are $ 2500000)
d) Prepare a contribution format income statement assuming actual sales are $ 300000