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Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a profit and some months showing a
Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below: Sales (23,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net operating loss $ 920,000 690,000 230,000 237,000 $ (7,000) Required: 1. Compute the company's CM ratio and its break-even point in both units and dollars. (Do not round intermediate calculations. Round your "Break-even point in units" answer up to nearest whole number.) Contribution margin ratio Break-even point in units Break-even point in dollars 25 % 23,700 $ 948,000
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