Question
Problem 2 Middlebrook Manufacturing makes one product, a lubricant used in large aircraft. The company's contribution format income statement for the most recent month
Problem 2 Middlebrook Manufacturing makes one product, a lubricant used in large aircraft. The company's contribution format income statement for the most recent month is provided below: Sales (40,000 units x $40 per unit) $ $1,600,000 Variable expenses 720,000 Contribution Margin 880,000 Fixed Expense 660,000 Net Operating Income $220,000 Required: 1. Compute the Contribution Margin %, break even in BOTH unit sales and dollar sales. Show all calculations 2. Using the data above, calculate the unit sales necessary to increase net operating income to $330,000.
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