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Q4: ABC Co. has the following information : Sales Revenue 60,000 $ , Contribution margin ratio 75 % , Variable cost per unit is 30
Q4: ABC Co. has the following information : Sales Revenue 60,000 $ , Contribution margin ratio 75 % , Variable cost per unit is 30 $ , Net operating income 15,000 $ , and the management wants to achieve a profit for the period of 70,000 $ please Answer the following questions :
- What is the contribution margin for the company
- What is the Break-even point in units
- What is the Break-even point in sales
- What is the Target profit in units
- What is the Target profit in sales
- What is the Margin of safety
- What is the margin of safety in units
- What is the margin of safety ratio
- What is the Operating leverage for the company
What would happen if sales decreased by 50 %
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