Question
sales .........................1,200,000 variable expense ...... 800,000 contribution margin ....400,000 fixed expense.............300,000 net operating expense... 100,000 the company has no beginning or ending inventories and produced
sales .........................1,200,000
variable expense ...... 800,000
contribution margin ....400,000
fixed expense.............300,000
net operating expense... 100,000
the company has no beginning or ending inventories and produced and sold 25,000 units during the month
1- What is the company's contribution margin ratio?
2- What is the company's break-even in units?
3- If sales increase by 100 units, by how much should net operating income increase?
4-How many units would the company have to sell to attain target profits of $125,000?
5-What is the company's margin of safety in dollars?
6-What is the company's degree of operating leverage?
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