Peterson Inc. created the follow forecast for the upcoming year. Sales $ 890,000 Variable expenses $ 489,500 Contribution margin $ 400,500 Fixed expenses $ 270,000
Peterson Inc. created the follow forecast for the upcoming year.
Sales $ 890,000
Variable expenses $ 489,500
Contribution margin $ 400,500
Fixed expenses $ 270,000
Operating income $ 130,500
What is the breakeven sales dollars? (3 marks)
What would the variable costs be if operating income was $219,375?
If sales increased by $100,000, by how much would operating income increase?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To find the breakeven sales dollars you can use the formula BreakevenSalesFixedExpensesContributionM...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Karen W. Braun, Wendy M. Tietz
5th edition
134128524, 978-0134128528
