The following information is available from the accounting records of Eva Corporation: Fixed costs per period are $4800. Sales volume for the last period was $19 360, and variable costs were $13 552. Capacity per period is a sales volume of $32 000.
(a) Compute
(i) The contribution margin;
(ii) The contribution rate.
(b) Compute the break-even point
(i) In sales dollars;
(ii) As a percent of capacity.
(c) Draw a detailed break-even chart.
(d) For each of the following independent situations, determine the break-even point:
(i) Fixed costs are decreased by $600;
(ii) Fixed costs are increased to $5670 and variable costs are changed to