Question
Microsoft co. sells cell phones. The companys contribution format income statement for the most recent year is given below: Total Per Unit % of Sales
Microsoft co. sells cell phones. The companys contribution format income statement for the most recent year is given below:
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| Total | Per Unit | % of Sales |
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| Sales (12,000 units) | $9,600,000 | $800 | 100% |
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| Variable Expense | $6,240,000 | $520 | ? |
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| Contribution Margin | $3,360,000 | $280 | ? |
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| Fixed Expense | $1,288,000 |
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| Net Income | $2,072,000 |
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Management is anxious to increase the companys profit and has asked for an analysis of a number of items.
- Compute the companys CM ratio and variable expense ratio.
- Compute the companys break-even point in both units and sales dollars.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
1118334329, 978-1118334324
