3.

Problem 2 (166) Sattler Corporation has provided the following contribution format income statement. All questions concem situations that are within the relevant range. Per unit Total Sales (8.000 units) $ 60 $480,000 Variable expenses 42 336,000 Contribution margin S18 144,000 Fixed expenses 135.000 Operating income $9.000 SELECTED FORMULA PROVIDED IN THIS PROBLEM Units to be sold at Breakeven = FIXED COST/UNIT CONTRIBUTION MARGIN Sales to be sold at Breakeven = FC/CM Units to be sold to achieve Target Operating Income = (FC + TOT/UCM Units to be sold to achieve Target Net Income =( FC + TOD/UCM whereTOI = TNI / (1-Tax Rate) Required: What is the contribution margin ratio in percentage? (2%) 21 b. What is the break-even point in units? (2%) c. Estimate how many units must be sold to achieve a target operating income of $54,000. (2%) Cont'd Problem 1 (22) 5/11