Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (40,800 units @ $26.00) Total variable cost Contribution margin Total fixed cost Operating income Required: $1,060,800 519,792 $ 541,008 584,766 $ (43,758) 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units units 2. Suppose 10,000 units are sold above beven. What is the operating income? 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 36 Suppose that revenues are $200,000 more than expected for the coming year, What would the total operating income be? Previous Next