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Acme Company produces computer printers that currently sell for $175 per unit. Acme's current income statement is shown below: Sales revenue $140,000 Variable costs 96,250
Acme Company produces computer printers that currently sell for $175 per unit. Acme's current income statement is shown below:
Sales revenue | $140,000 |
Variable costs | 96,250 |
Contribution margin | 43,750 |
Fixed costs | 20,000 |
Net income | 23,750 |
a. Calculate the # of units sold.
b. Calculate the contribution margin per unit and the contribution margin ratio.
c. Calculate the breakeven point in units and the breakeven point in $.
d. Calculate the margin of safety in units and the margin of safety in revenue ($).
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