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The companys contribution format income statement for the most recent year is given below: Total Per Unit % of Sales Sales (12,000 units) $9,600,000 $800
The companys contribution format income statement for the most recent year is given below:
| Total | Per Unit | % of Sales | |||
| Sales (12,000 units) | $9,600,000 | $800 | 100% | ||
| Variable Expense | $6,240,000 | $520 | ? | ||
| Contribution Margin | $3,360,000 | $280 | ? | ||
| Fixed Expense | $1,288,000 | ||||
| Net Income | $2,072,000 | ||||
Management is anxious to increase the companys profit and has asked for an analysis of a number of items.
- Compute the companys CM ratio and variable expense ratio.
- Compute the companys break-even point in both units and sales dollars.
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