Question
2) The following is Arkadia Corporation's contribution format income statement for last month: Sales Less: Variable Expenses. $1,200,000 800.000 Contribution Margin Less: Fixed Expenses Net
2) The following is Arkadia Corporation's contribution format income statement for last month: Sales Less: Variable Expenses. $1,200,000 800.000 Contribution Margin Less: Fixed Expenses Net Income $400,000 300.000 $100,000 The company has no beginning or ending inventories and produced and sold 20.000 units during the month. Required: a. What is the company's contribution margin ratio? b. What is the company's break-even in units? c. If sales increase by 100 units, by how much should net income increase? d. How many units would the company have to sell to attain target profits of $125.000? e. What is the company's margin of safety in dollars? f. What is the company's degree of operating leverage
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