Jefferson Company Produces Only Product A Required:
A

Essay

Jefferson Company produces only product A. The following information is available: $\begin{array}{ll}\text { Selling price per unit } & \$ 95 \\\text { Variable costs per } & \$ 70 \\\text { unit } & \\\text { Total fixed costs } & \$ 130,000\end{array}$ Required:
a. Compute break- even point in units.
b. Compute break- even volume in dollars.
c. Compute the margin of safety assuming planned unit sales of 6,000.