The Robinson Company sells sports decals that can be personalized with a player”s name, a team name, and a jersey number for $5 each. Robinson buys the decals from a supplier for $1.50 each and spends an additional $0.50 in variable operating costs per decal. The results of last month”s operations are as follows:
|
Sales |
$10,000 |
|
Cost of goods sold |
3,000 |
|
Gross profit |
7,000 |
|
Operating expenses |
2,500 |
|
Operating income |
$ 4,500 |
Required
- What is Robinson”s monthly breakeven point in units? In dollars?
- What is Robinson”s margin of safety?