8.

Current operating income for Bay Area Cycles Co. is $52,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $208,000.

Required:

1.

Calculate Bay Area Cycles per unit variable expense and contribution margin. How many units are currently being sold?

	Per Unit	volume	total	ratio
Revenue	$100			________%
Variable expense				_______%
Contribution margin				________%
Fixed expense
Operating income

2.	How many additional unit sales would be necessary to achieve operating income of $130,000?
	Additional unit sales: ________ units