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Changes in Break-Even Points with Changes in Unit Prices Plata produces and sells plastic
storage containers. Last year, Plata sold 125,000 units. The income statement for Plata, Inc., for
last year is as follows: Sales $625,000 Less: Variable expenses 343,750 Contribution margin
$281,250 Less: Fixed expenses 180,000 Operating income $101,250 Required: 1. Compute the
break-even point in units and in revenues. Compute the margin of safety for last year. 2. Suppose
that the

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  • 1. Changes in Break-Even Points with Changes in Unit Prices Plata produces and sells plastic storage containers. Last year, Plata sold 125,000 units. The income statement for Plata, Inc., for last year is as follows: Sales $625,000 Less: Variable expenses 343,750 Contribution margin $281,250 Less: Fixed expenses 180,000 Operating income $101,250 Required: 1. Compute the break-even point in units and in revenues. Compute the margin of safety for last year. 2. Suppose that the