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Author Question: The Rouge Company sells sports decals that can be personalized with a player's name, a team name, ... (Read 57 times)

mccallkeeler

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on: Feb 5, 2023
The Rouge Company sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $5 each. Rouge buys the licensed decals from a supplier for $1.25 each and spends an additional $0.75 in variable operating costs per decal. The results of last month's operations are as follows:

Sales revenue$10,000
Cost of goods sold    2,500
Gross profit7,500
Operating expenses    3,000
Operating income$ 4,500

Required:

a.What is Rouge's monthly break-even point in units? In dollars?
b.What is Rouge's margin of safety (both units and dollars)?
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Marked as best answer by mccallkeeler on Feb 5, 2023

BryanAultm

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Reply #1 on: Feb 5, 2023
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mccallkeeler

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)

shewald78

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Reply 3 on: Yesterday
Excellent

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