A company sells clocks for $40 each. Its variable cost per unit is $32, and its fixed cost per year is $20,000.

If it sells 12,500 clocks this year, what is its contribution margin?

If it sells 12,500 clocks this year, what is its operating income?

If it sells 12,500 clocks this year, what is its operating leverage?

If it sells 12,500 clocks this year, what would be the percentage change in its operating income if it sells 12% more clocks next year?

What is the companys contribution margin per unit?

What is the companys contribution margin ratio?

How many units must the company sell to break even?

What amount of sales dollars is needed to breakeven?

How many units must the company sell to earn an operating income of $60,000?

What amount of sales dollars is needed to earn an operating income of $60,000?

If the company is currently selling and expects to sell 12,500 clocks, what is the margin of safety in units?

If the company is currently selling and expects to sell 12,500 clocks, what is the margin of safety in sales dollars?

If the company is currently selling and expects to sell 12,500 clocks, what is the margin of safety percentage?