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The following information related to K-Zone company during the year 2021: Number of units sold 50,000 units Total Sales revenue $1,500,000 Variable cost $18 per

The following information related to K-Zone company during the year 2021:

Number of units sold 50,000 units

Total Sales revenue $1,500,000

Variable cost $18 per unit

Fixed cost $6 per unit

Target profit $100,000

1- Calculate the breakeven point in units.

2- Calculate the breakeven point in dollars.

3- Calculate the number of units to achieve the target profit.

4- Calculate sales revenue to achieve target profit.

5- Calculate the margin of safety in units.

6- Calculate the degree of operating leverage.

7- Prepare the income statement by using the contribution method.

8- Draw the contribution margin graph.

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