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I need the answer as soon as possible Kea Company manufactures and sells a specialised cordless telephone for high electromagnetic radiation environments. The company's contribution
I need the answer as soon as possible
Kea Company manufactures and sells a specialised cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for 2020 is given below: $ Sales (20,000 phones) 1,200,000 Variable expenses 900,000 Contribution margin Fixed expenses 300,000 240,000 $ 60,000 Net operating income Management is anxious to increase the company's profit and has asked for an analysis of a number of items. Required: You can type your answers and working straight into the box below, or you can type your answers into a document or a spreadsheet, and copy and paste into the box below, or you may handwrite the answers, take a photo and upload into the file uploading box at the bottom of this screen (scroll down). You can download the formula sheet here if you haven't already (a) Calculate the company's breakeven point in unit sales. (4 marks) (b) Assume that next year management wants the company to earn a before-tax profit of at least $90,000. How many phones will have to be sold to earn this target profit? (1 mark)Step by Step Solution
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