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Question 7. Assume the data for ABC Company in the table below and solve the following. Expected Sales units 50,000 units Estimated Selling price per

Question 7. Assume the data for ABC Company in the table below and solve the following.

Expected Sales units

50,000 units

Estimated Selling price per unit

$10 per unit

Estimated Variable cost per unit

$5 per unit

Estimated Fixed cost

$100,000

  1. What is the income from operations?
  2. What is the contribution margin ratio?
  3. What is the unit contribution margin?
  4. What is the break-even point in units?
  5. What is the break-even point in dollars?
  6. What is the margin of safety?
  7. Calculate sales in units to earn a target profit of $250,000.

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