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Dog Dandy distributes a dog collar made of wooden beads that sells for $40 per unit. Variable expenses are $20 per unit, and fixed expenses
Dog Dandy distributes a dog collar made of wooden beads that sells for $40 per unit. Variable expenses are $20 per unit, and fixed expenses total $120,000 per year. Its operating results for last year were as follows: Sales $ 400,000 Variable expenses 200,000 Contribution margin 200,000 Fixed expenses 120,000 Operating income $ 80,000 Required: Answer each of the following independent questions based on the original data. 1. What is the products CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this years unit sales and total sales decrease
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