Question
1. Karlik Enterprises distributes a single product whose selling price is $28 per unit and whose variable expense is $18 per unit. The companys monthly
1. Karlik Enterprises distributes a single product whose selling price is $28 per unit and whose variable expense is $18 per unit. The companys monthly fixed expense is $24,000.
Calculate the companys break-even point in unit sales.
2. Jaffre Enterprises distributes a single product whose selling price is $10 per unit and whose variable expense is $5 per unit. The companys fixed expense is $14,000 per month.
Calculate the companys break-even point in unit sales.
3. Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $164,000, total variable expenses were $123,000, and fixed expenses were $39,000.
a. What is the companys contribution margin (CM) ratio?
b. What is the estimated change in the companys net operating income if it can increase sales volume by 725 units and total sales by $2,900? (Do not round intermediate calculations.)
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