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Pristine Microware produces and sells different types of solid state hard drives, each varying in quality and storage capacity. Below is some information about its
Pristine Microware produces and sells different types of solid state hard drives, each varying in quality and storage capacity. Below is some information about its latest products. Silver (500 GB) Price $ 50 Variable Cost $ 22 Fixed Cost 16,800 Projected Volume 800 Gold (1 TB) Price $ 90 Variable Cost $ 45 Fixed Cost 22,500 Projected Volume 700 Platinum (2 TB) Price $ 185 Variable Cost $ 135 Fixed Cost 18,000 Projected Volume 400 Required: Create a Contribution Format Income Statement for each of the solid state hard drives and calculate Breakeven Point, Margin of Safety, and Degree of Operating Leverage using the statements. Using the Degree of Operating Leverage only, fill in the information about sales volume increases. Prove these numbers true by applying the change in volume to a new Contribution Format Income Statement
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