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For Larry Company which is specialized in producing car engines. Use the following information to answer the following questions: Total Sales (at 1000 engine) $800,000
For Larry Company which is specialized in producing car engines. Use the following information to answer the following questions: Total Sales (at 1000 engine) $800,000 Variable expenses 350,000 Contribution margin 450,000 Fixed expenses 150,000 Net operating income 300,000 1. What is the CM in units ? (3marks) 2. What is the breakeven point in units? (3 marks) 3. What is the CM ratio? (3 marks) 4. What is the CM ratio in units? (3marks) 5. What is the amount of sales Larry must make in order to make net operating income of 510,000$? (4 marks) 6. What is the company margin of safety assuming breakeven sales are 250 units? (4 marks)
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