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The following is Alsatia Corporation's contribution format income statement for last month: Sales $ 1 , 4 0 0 , 0 0 0 Less: variable
The following is Alsatia Corporation's contribution format income statement for last month:
Sales $
Less: variable expenses
Contribution margin
Less: fixed expenses
Operating income $
The company has no beginning or ending inventories and produced and sold units during the month.
Required:
a What is the company's contribution margin ratio?
b What is the company's breakeven in units?
c If sales increase by units, by how much should operating income increase?
d How many units would the company have to sell to attain target operating income of $
e What is the company's margin of safety in dollars?
f What is the company's degree of operating leverage?
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