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Harper Company produced and sold 75,000 bags during the year 2022 at $50 per unit. Total fixed cost was $2,100,000 while variable cost was $20
Harper Company produced and sold 75,000 bags during the year 2022 at $50 per unit. Total fixed cost was $2,100,000 while variable cost was $20 per unit. (a) Prepare a contribution margin income statement for the Year 2022. (b) Determine the breakeven point in units and in dollars. (c) Compute the margin of safety in $ and in %. (d) Determine the breakpoint point in units and in dollars if variable cost increased by 25%. (e) Ignoring part (c), the sales manager proposes to spend $120,000 on advertisement. According to him, this will result in an increase of sales of 3,500 units. Should the proposal be accepted
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