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Bahrain, Inc. sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less
Bahrain, Inc. sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less fixed expenses Net income Instructions: (Answer any five) 2 marks each 1. What is the Contribution margin per unit? $120,000 (68,000) 52,000 (40,000) $12,000 2. If sales are doubled to $240,000, what is the total variable costs? 3. If sales are doubled to $240,000, what is the total fixed costs? 4. If Bahrain is past the breakeven point and 10 more units are sold, profits will increase by 5. Compute how many units must be sold to break even.. 6. Compute how many units must be sold to achieve a profit of $20,000.
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