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Meriden Tugo and Kozy Companies

Price: $4.99


BE18-8 Meriden Company has a unit selling price of $520, variable costs per unit of
$286, and fixed costs of $187,200. Compute the break-even point in units using (a) the
mathematical equation and (b) contribution margin per unit.


BE18-10 For Turgo Company, variable costs are 60% of sales, and fixed costs are
$195,000. Management’s net income goal is $75,000. Compute the required sales in dollars
needed to achieve management’s target net income of $75,000. (Use the contribution
margin approach.)

BE18-11 For Kozy Company, actual sales are $1,200,000 and break-even sales are
$840,000. Compute (a) the margin of safety in dollars and (b) the margin of safety
ratio.

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