Question
Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If
Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio
Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. Answer:
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