Question
Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense
Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $104,000.
Required:
- Calculate Bay Area Cycles per unit variable expense and contribution margin. How many units are currently being sold?
- How many additional unit sales would be necessary to achieve operating income of $65,000?
Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $104,000.
Required:
- Calculate Bay Area Cycles per unit variable expense and contribution margin. How many units are currently being sold?
- How many additional unit sales would be necessary to achieve operating income of $65,000?
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College Accounting A Practical Approach Chapters 1-15
Authors: Jeffrey Slater
7th Edition
0130954888, 978-0130954886
