Question
Please see photo below.1. Breakeven point in unit sales2. Breakeven point in dollar sales3. What is the total contribution margin at the break even point?4.
Please see photo below.1. Breakeven point in unit sales2. Breakeven point in dollar sales3. What is the total contribution margin at the break even point?4. Unit sales needed to attain target profit of $56,400?5. Verify your answer by preparing a contribution format income statement at the target sales level. 6. Compute the company's margin of safety in both dollar and percentage.7. What is the company's CM ratio? If the company can sell more units thereby increasing sales $73,000 per month and there is no charge in fixed expenses, by how much would you expect monthly net operating income to increase?
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