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The CVP income statement for ABC Company would therefore be reported as follows. ABC Company Income Statement For the year ended in December 31.2015 Sells
The CVP income statement for ABC Company would therefore be reported as follows. ABC Company Income Statement For the year ended in December 31.2015 Sells (6.000 units) Variable expenses Contribution margin Fixed expenses Net operation income $3,000,000 1.200,000 1.800.000 1,300,000 500,000 Requierment a. Calculate the sales price per unit and the Variable cost per unit. b. Compute the company's contribution margin ratio. c. Compute the company's break-even point in units? d. Calculate the company's margin of safety in dollars. e. Assume that next year management wants the company to earn profit to $1,500,000. How many units be sold to reach this target profit
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