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$26: ABC Co. has the following information : Sales Revenue 40,000 $, Variable cost ratio 75 %, Variable cost per unit is 30 $, Net
$26: ABC Co. has the following information : Sales Revenue 40,000 $, Variable cost ratio 75 %, Variable cost per unit is 30 $, Net operating income 5,000 $, and the management wants to achieve a profit for the period of 45,000 $ please Answer the following questions : 1. What is the contribution margin for the company 2. What is the Break-even point in units 3. What is the Break-even point in sales 4. What is the Target profit in units 5. What is the Target profit in sales 6. What is the Margin of safety 7. What is the margin of safety in units 8. What is the margin of safety ratio 9. What is the Operating leverage for the company 10. What would happen if sales increased by 50 %
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