Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (46,100 units @ $36.00) Total variable cost $1,659,600 547,668 $ 1,111,932 Contribution margin Total fixed cost Operating income Required: 1,201,176 $ (89,244) 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units 22.06 X 48,800 X units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? 220,500 X 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. Contribution margin ratio Break-even sales revenue 63 X % 1,708,000 X Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be? 46,620 X