Bokay Creations Has Budgeted Annual Fixed Costs of $240,000 and an Estimated

Essay

Bokay Creations has budgeted annual fixed costs of $240,000 and an estimated variable cost ratio of 60%.
Required:
(a) Compute Bokay's break-even point in sales dollars.
(b) Compute Bokay's margin of safety if the company expects to earn revenues of $800,000.
(c) Compute Bokay's expected operating profit at the $800,000 revenue.