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Deckyard Company distributes a lightweight lawn chair that sells for $18 per unit. Variable expenses are $7.20 per unit, and fixed expenses total $59,400 annually.
Deckyard Company distributes a lightweight lawn chair that sells for $18 per unit. Variable expenses are $7.20 per unit, and fixed expenses total $59,400 annually. Required: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollars. 3. The company estimates that sales will increase by $40,000 during the coming year due to increased demand. By how much should net operating income increase?
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