Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $176,000.

Required:

1. Calculate Bay Area Cycles per unit variable expense and contribution margin. How many units are currently being sold?
2. How many additional unit sales would be necessary to achieve operating income of $110,000?

How many additional unit sales would be necessary to achieve operating income of $110,000?

Additional unit sales

units

Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20 and fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $110,000 ? Complete this question by entering your answers in the tabs below