posted by Judy on .
Larry sells each unit for $500. Variable costs per unit equal $300. Totalfixed costs equal $800,000. Larry is currently sellig 5,000 units per period and would like to earn net income of $400,00.
comput: Break-evn point indollras, sales units necessary to attain desired income, and margin of safety ration for current operations.
Margin of safety= what pecent? not sure where to go from here.
Miley Railroad Co. is about to issue $259,000 of 9-year bonds paying an 12% interest rate, with interest payable semiannually. The discount rate for such securities is 12%.