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Bob's Business sells radios for $200. The variable costs per unit are $150 and fixed costs are $500,000. 1. The unit contribution margin is 2.
Bob's Business sells radios for $200. The variable costs per unit are $150 and fixed costs are $500,000. 1. The unit contribution margin is 2. The contribution ratio is 3. The variable expense ratio is 4. The break-even point in dollars is 5. How many radios must Bob's Business sell in order to earn a $100,000 profit? 6. What is Bob's Business's margin of safety in dollars at the $100,000 profit level? 7. What is Bob's operating leverage at the $100,000 profit level? 8. If sales increase by 7%, what is the estimated increase in net income? (State as a percentage)
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