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Basic Cost - Volume - Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales
Basic CostVolumeProfit Concepts
Klamath Company produces a single product. The projected income statement for the coming year is as follows:
Sales units @ $
Total variable cost
Contribution margin
Total fixed cost
Operating income
$
$
$
Required:
Compute the unit contribution margin and the units that must be sold to break even.
Unit contribution margin
$
Breakeven units
units
Suppose units are sold above breakeven. What is the operating income?
$
Compute the contribution margin ratio. Use the contribution margin ratio to compute the breakeven point in sales revenue.
Contribution margin ratio
X
Breakeven sales revenue
$
Suppose that revenues are $ more than expected for the coming year. What would the total operating income be
$
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