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Lino, Inc produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales Less:
Lino, Inc produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income I $540,000 360,000 180,000 120.000 $60,000 The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories. Required: Given the present situation, compute 1 The break-even sales in kilograms. 2 The break-even sales in dollars. 3 The sales in kilograms that would be required to produce operating income of $90,000. 4 The margin of safety in dollars
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