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Chapter 5 Case 1 Create a spreadsheet to calculate the following questions. Be sure to show your calculations. Company A sells 12,000 toaster ovens for
Chapter 5 Case 1 Create a spreadsheet to calculate the following questions. Be sure to show your calculations. Company A sells 12,000 toaster ovens for $45 each. The contribution margin percentage is 30%, and the fixed costs are $200,000. a. What is the total revenue? b. What is the contribution margin if 12,000 toaster ovens are sold? (check figure: $162,000 ) c. What is the contribution margin per unit? d. How many units need to be sold to break-even? (check figure: 14,815) e. Calculate the operating income if 12,000 units are produced and sold? f. How much revenue needs to be generated to yield an operating income of $145,000 ? (check figure: $1,150,000)
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