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Black Pearl, Inc., sells a single product. The company's most recent income statement is given below. Sales $100,000 Less variable expenses (60,000) Contribution margin 40,000
Black Pearl, Inc., sells a single product. The company's most recent income statement is given below. Sales $100,000 Less variable expenses (60,000) Contribution margin 40,000 Less fixed expenses (10,000) Net income $30,000
a. Contribution margin ratio is? b. Breakeven point in total sales dollars is? c. To achieve $50,000 in net income, sales must total? d. If sales increase by $100,000, net income will increase by?
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