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Assume the following information: Amount Per Unit Sales $300,000 $40 Variable expenses $112,500 $15 Contribution margin $187,500 $25 Fixed expenses $160,000 Net operating income $27,500
Assume the following information: Amount Per Unit Sales $300,000 $40 Variable expenses $112,500 $15 Contribution margin $187,500 $25 Fixed expenses $160,000 Net operating income $27,500
The dollar sales to break-even is?
What is the margin of safety in dollars?
What is the degree of operating leverage?
How many units must be sold if the target income is $60,000?
What is the effect on break-even point and target income if the selling price increases to $50? Contribution margin?
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