CostVolumeProfit Incomestatement-foryearendingDec2017 Sales(20,000units)$600,000 VariableExpense$360,000 Contributionmargin$240,000 Fixedexpense$150,000 Netincome$90,000 Questions: 1. Whatisthecompanybreak-evenpoint? 2. Howmanymoreunitswouldthecompanyhavehadtoselltoearnnetincomeof$150,000in2017? 3. Ifthecompanyexpectsa25%increaseinsalesin2018,whatwouldbetheexpectednetincomein2018? 4. Howmuchsalesdollarswouldthecompanyhavetogenerateinordertoearnatargetneincomeof$160,000in2018?
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Question:
CostVolumeProfit
Incomestatement-foryearendingDec2017
Sales(20,000units)$600,000
VariableExpense$360,000
Contributionmargin$240,000
Fixedexpense$150,000
Netincome$90,000
Questions:
1.Whatisthecompanybreak-evenpoint?
2.Howmanymoreunitswouldthecompanyhavehadtoselltoearnnetincomeof$150,000in2017?
3.Ifthecompanyexpectsa25%increaseinsalesin2018,whatwouldbetheexpectednetincomein2018?
4.Howmuchsalesdollarswouldthecompanyhavetogenerateinordertoearnatargetneincomeof$160,000in2018?
Expert Answer:
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