Exercise4-24Basic Cost-Volume-Profit Concepts

OBJECTIVE 1

Berry Company produces a single product. The projected income statement for the coming year is as follows:

Sales (24000 units @ $75) 1800000

Less Variable costs 594000

Contribution margin 1206000

less fixed costs 984025

Operating Income 221975

1. compute the unit contribution margin and the units that must be sold to break even.
2. Suppose 30,000 units are sold above break-even. What is the operating income?
3. Compute the contribution margin ratio and the BEP in dollars. Suppose that revenues are $500,000 more than expected for the coming year. What would the total operating income be?

I got these answers but my assignment says I only got 9.96 / 12 points for this question so i'm not sure what I did wrong. My answers: The unit contribution margin is___50.25___dollars.The break-even in units is___19583___units. (2)Operating income is___1507500___dollars.(3) The contribution margin ratio is___67___percent. The break-even sales revenue is___1468694.03___dollars. If revenues were $500,000 more than expected for the coming year, total operating income would be___721975___dollars.