Question
The following is abc Inc contribution margin income statement for 2019. Sales $ 3,200,000 Variable expenses 2,600,000 Contribution margin 600,000 Fixed expenses 400,000 Operating income
The following is abc Inc contribution margin income statement for 2019.
Sales
$ 3,200,000
Variable expenses
2,600,000
Contribution margin
600,000
Fixed expenses
400,000
Operating income
$240,000
ABC Inc corporation has no beginning or ending inventories and produced and sold 7,500 units during the year.
1.What is the company's contribution margin ratio?
________
2.What is the company's breakeven sales in units?
________
3.If sales increase by 200 units, by how much should operating income increase?
________
4.How many units would the company have to sell to attain target operating income of $450,000?
________
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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