Basic Cost$-$Volume$-$Profit Concepts

Klamath Company produces a single product. The projected income statement for the coming year is as follows:

Sales $(76,900$ units @ $$26\mathrm{.}00)$

Total variable cost

Contribution margin

Total fixed cost

Operating income

$$1,999,400$

$719,784$

$$1,279,616$

$1,382,784$

$$(103,168)$

Required:

Compute the unit contribution margin and the units that must be sold to break even.

Unit contribution margin

$

Break$-$even units

$$ units

Suppose $10,000$ units are sold above breakeven. What is the operating income?

$

$x$

Compute the contribution margin ratio. Use the contribution margin ratio to compute the break$-$even point in sales revenue.

Contribution margin ratio

X $\%$

Break$-$even sales revenue

$

Suppose that revenues are $$200,000$ more than expected for the coming year. What would the total operating income be$?$

$