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Question 2: Use the income statement shown below to answer the following questions. 130 points a) If known $ 6,000 of the general overhead is

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Question 2: Use the income statement shown below to answer the following questions. 130 points a) If known $ 6,000 of the general overhead is considered variable overhead, what are the contribution margin and the b) Determine the break-even volume of work for the company with a fixed overhead of $47,827, the contribution margin o) If the company thinks the result of (b) in terms of break-even volume of work exceeds the volume of work that the d) Determine the profit and overhead markup contribution margin ratio? ratio from (a), and a required level of profit of $21,000. company can performhat re the posible ways for the compao the pfit roquirement ($21,000) for the next year? WEST MOUNTAIN CONSTRUCTION INCOME STATEMENT REVENUE .214 20855 QUPMENT COSTS 1773 4673 OROSS PROFT OVRHEAD NET PROFT FROM OPERATIONS OTHER INOOME AND EXPENSE PROFIT BERORE TAX INCOME TAX ROIT AFTER TAX 3 827 99 Lusz ,921 1 Page Question 2: Use the income statement shown below to answer the following questions. 130 points a) If known $ 6,000 of the general overhead is considered variable overhead, what are the contribution margin and the b) Determine the break-even volume of work for the company with a fixed overhead of $47,827, the contribution margin o) If the company thinks the result of (b) in terms of break-even volume of work exceeds the volume of work that the d) Determine the profit and overhead markup contribution margin ratio? ratio from (a), and a required level of profit of $21,000. company can performhat re the posible ways for the compao the pfit roquirement ($21,000) for the next year? WEST MOUNTAIN CONSTRUCTION INCOME STATEMENT REVENUE .214 20855 QUPMENT COSTS 1773 4673 OROSS PROFT OVRHEAD NET PROFT FROM OPERATIONS OTHER INOOME AND EXPENSE PROFIT BERORE TAX INCOME TAX ROIT AFTER TAX 3 827 99 Lusz ,921 1 Page

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