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Q2: ABC Co. has the following information : Sales Revenue 400,000 $, Variable cost ratio 75 %, Variable cost per unit is 300 $, Net
Q2: ABC Co. has the following information : Sales Revenue 400,000 $, Variable cost ratio 75 %, Variable cost per unit is 300 $, Net operating income 50,000 $, and the management wants to achieve a profit for the period of 150,000 $ please Answer the following questions: 1. What is the contribution margin for the company 2. What is the Break-even point in units 3. What is the Break-even point in sales 4. What is the Target profit in units 5. What is the Target profit in sales 6. What is the Margin of safety 7. What is the margin of safety in units 8. What is the margin of safety in units 9. What is the Operating leverage for the company 10. What would happen if sales decreased by 20 %? Man ACC
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