Oldman River Company Expects to Produce and Sell 2,000 Units

Essay

Oldman River Company expects to produce and sell 2,000 units next month.Data on costs follows: $\begin{array}{ll}\text { Per unit costs: } & \\\text { Selling price } & \$ 40 \\\text { Variable manufacturing costs } & \$ 10 \\\text { Variable selling costs } & \$ 6\\\\\text { Total costs: }\\\text { Fixed manufacturing costs } & \$ 16,000 \\\text { Fixed selling costs } & \$ 8,000\end{array}$
A. What is the break-even point in units?
B. What is the break-even point in sales dollars?
C. What is the expected operating income for next month?
D. What is the margin of safety in dollars?