Question
Klein Company distributes a high-quality bird feeder that sells for $50 per unit. Variable costs are $20 per unit, and fixed costs total $297,000
Klein Company distributes a high-quality bird feeder that sells for $50 per unit. Variable costs are $20 per unit, and fixed costs total $297,000 annually. Required: Answer the following independent questions: 1. What is the product's CM ratio? CM ratio % 2. Use the CM ratio to determine the break-even point in sales dollars. Break-even point in sales dollars 3. The company estimates that sales will increase by $69,000 during the coming year due to increased demand. By how much should operating income increase? Operating income increases by
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