Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain how i can compute these five question from the information in the picture 1. Calculate break-even point in units and dollars. 2. What

Please explain how i can compute these five question from the information in the picture

1. Calculate break-even point in units and dollars.

2. What is the contribution margin at break-even point?

3. Compute the number of units to be sold to earn a profit of $36,000.

4. Compute the margin of safety using original data.

5. Compute CM ratio. Compute the expected increase in monthly net operating if sales increase by $160,000 and fixed expenses do not change.

image text in transcribed
Total~ Per unit Sales ~ $1,200,000~ $80~ Less variable expenses~ $840, 000~ $56+ Contribution Margin 360,000~ $24~ Less fixed expenses~ 300,000~ Net Operating income $60,000 Required: 1. Calculate break-even point in units and dollars. ~ 2. What is the contribution margin at break-even point?~ 3. Compute the number of units to be sold to earn a profit of $36,000.~ 4. Compute the margin of safety using original data. 5. Compute CM ratio. Compute the expected increase in monthly net operating if sales increase by $160,000 and fixed expenses do not change

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions