Question
Current operating income for Bay Area Cycles Co. is $57,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense
| Current operating income for Bay Area Cycles Co. is $57,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $228,000. |
| Required: |
| 1. | Calculate Bay Area Cycle?s per unit variable expense and contribution margin. How many units are currently being sold? |
| Contribution Margin: Volume and Total | |
| 2. | How many additional unit sales would be necessary to achieve operating income of $145,000? |
|
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
