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1. Consider the income statement for Pickbury Farm: Sales $500,000 Variable Costs 350,000 Contribution margin 150,000 Fixed costs 80,000 Net Income 70,000 Q: At what

1. Consider the income statement for Pickbury Farm:

Sales $500,000
Variable Costs 350,000
Contribution margin 150,000
Fixed costs 80,000
Net Income 70,000

Q: At what sales level does Pickbury achieve net income of $100,000?

2. The Blue Saints Bank is holding a concert in Toronto. Fixed costs relating to staging a concert are $350,000. Variable costs per patron are $5. The selling price for a ticket is $25. The Blue Saints Bank has sold 23,000 tickets so far. How many tickets does the Blue Saints Bank need to sell to achieve net income of $50,000 after income tax, assuming the income tax rate is 20%

3. Franklin Company manufactures bikes. During the year a new line is developed. The break even point for this line of bikes is $300,0000 of sales with a contribution margin of 30%. Assuming that the profit for the line during the year amounted to $150,000, total sales during the year must have been:

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