Question
Hardee Company sells a singel product. The selling price is $30 per unit and the variable expense is $18 per unit. The company's most recent
Hardee Company sells a singel product. The selling price is $30 per unit and the variable expense is $18 per unit. The company's most recent annual contribution format income statement is given below:
Sales $135,000
Variable expense $81,000
Contribution margin 54,000
Fixed Expenses 48,000
Net operating income $6,000
A. compute the contribution margin per unit
B.Compute the CM ratio
C. Compute the break-even point in sales dollars
D Compute the break-even point in units sold
E. How many units must be sold next year to double the company's profits?
F. Compute the company's degree of operating leverage
G. Sales for nex year(in units) are expected to increase by 5%. using the degre of operating leverage, compute the expected percentage increase in net opertating income
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