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Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Income $1.400,000 $900.000 d avail einstude $500,000 $300.000 $200,000 The company has no beginning
Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Income $1.400,000 $900.000 d avail einstude $500,000 $300.000 $200,000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month. Required: a) What is the company's contribution margin ratio? 1 Mark b) What is the company's break-even in units? 2 Marks c) If sales increase by 100 units, by how much should operating income increase? 1 Mark d) How many units would the company have to sell to attain target operating income of W $225,000? 2 Marks e) What is the company's margin of safety in dollars? 1 Mark 36W (d
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