Cost$-$Volume$-$Profit Analysis Practice

Glynn Manufacturing makes one product, coffee extract used in the ice cream and candy industry. The company's contribution format income statement for the most recent month is provided below:

Sales units $x$$$50$ per unit$)$ $$$1,500,000$

Variable expenses $900,000$

Contribution Margin $,600,000$

Fixed Expense $,400,000$

Net Operating Income $$200,000$

Required:

Compute the Contribution Margin $\%,$ break even in BOTH unit sales and dollar sales. Show all calculations

Using the data above, calculate the unit sales necessary to increase net operating income to $$250,000.$