Question
Kaido Co. produces and sells jeweled Gucci messenger handbags. In 2019 the company sold 51,000 units. Sales and costs for that level of sales is
Kaido Co. produces and sells jeweled Gucci messenger handbags. In 2019 the company sold 51,000 units. Sales and costs for that level of sales is as follows: Sales $2,040,000 Variable costs 1,632,000 Contribution margin 408,000 Fixed costs 127,500 Net income 280,500
Required: Prepare a contribution margin income statement for December 31, 2020 for Kaido. Assume that the company expects unit sales to increase by 20,000 with no change in unit sales price or unit variable cost.
What is Kaidos DOL factor? Show your formula & work. Round to one decimal. __________ What is Kaidos Break-Even point in sales dollars? Show your formula & work. $__________
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