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1. Blue Company produces and sells a single product. The selling price per unit is w500. Selected data for the contribution format income statement of
1. Blue Company produces and sells a single product. The selling price per unit is w500. Selected data for the contribution format income statement of May, 20x5, follow: Contribution Format Income Statement Data Sales Variable expense ratio Fixed manufacturing overhead cost Fixed SG&A cost W500,000 60% W100,000 50,000 Based on the above data, please answer the following questions. (1) Calculate the break-even point in unit sales. (10 point) (2) Determine how many products would have to be sold to attain target net operating income of W100,000. (10 point) (3) What is the net operating income if sales increase by 50%? (10 point) (4) Calculate the margin of safety percentage. (10 point)
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