The following information is from the 2017 Financial records of Dreyfuss Corp.Dreyfuss makes earplugs that they sell for $1 eachAmounts in US$ ‘000sRevenue 400,000CostsManufacturing Costs 220,000Annual Costs of Office Staff and Rent 90,000Production Consumables 2,000Depreciation – Straight-line over 20 years 18,000Property Taxes 5,000Sales Commission 13,000Other Overhead Costs 4,000Total Costs 352,000Net Income 48,000Q1. Which costs are considered Fixed Costs?Q2. What is Dreyfuss’ breakeven level of revenue?Q3. What is the margin of safety in dollars?Assume prices and costs remain constant in 2018
RECOMMENDED!!The following information is from the 2017 Financial records of Dreyfuss Corp.
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