Question
COBAIS Company manufactures and sells a single product. The selling price is $60 per unit and variable expenses are $36 per unit. The companys sales
COBAIS Company manufactures and sells a single product. The selling price is $60 per unit and variable expenses are $36 per unit. The companys sales and expenses for last year are provided below. June 4,600 units July 7,200 units August 5,400 units September 6,800 units October 3,800 units Sales Less Variable Expense Contribution Margin Less Fixed Expenses Total $270,000 162,000 108,000 96,000 $ 12,000 Required: Net Income 1. 2. 3. 4. 5. Compute the contribution margin per unit Compute the contribution margin ratio Compute the break-even point in: a. Units b. Sales dollars If sales had been $50,000 higher last year, how much would be net income? How many units must be sold next year to double the companys profits?
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