managerial accounting course

EXERCISE 1: BREAK-EVEN ANALYSIS The Student Company has the following expected costs: Total Variable Expense $2,400,000 Total Fixed Expense $1,250,000 Selling price is $100 per unit. Units sold = 60,000 units. Required: 1. Compute CM ratio. 2. Compute Contribution Margin per unit. 3. Compute the break-even point in terms of units must be sold (at budgeted sales) and in dollars. 4. Compute the margin of safety in dollars and as a percentage of sales. 5. Compute the degree of operating leverage. 6. If next month sales will increase by 15%, what will be the change in net operating income