Q: Miles Company had $120,000 of net income in 2019 when the selling price per unit was $140, the variable costs per unit were $105, and the fixed costs were $120,000. Management expects per unit data and total fixed costs to remain the same in 2020.

Instructions

(a) Determine the contribution margin ratio.

(b) Compute the break-even point in dollars .

(c) Compute the sales level in units if margin of safety ratio 40%.

(d) Compute the sales level in dollars make profit ratio 15%.

(e) Compute the sales level in dollars make profit amount 30,000$.