glacial company estimate that variable costs will be 62.5٪ of sales , and fixed costs will total 600,000. The selling price of the product is 4$.


a) prepare a cvp graph , assuming maximum sales of 3,200,000 (note: use 400,000 increments for sales and costs and 100,000 increments for units.)

b)compute the break-even point in (1)units and (2)dollars.

c) assuming actual sales are $2million , compute the margin of safety in (1) dollars and (2) as a ratio.​