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The following is Antisdale Corporation's contribution format income statement for last month: Sales $ 3,750,000 Variable expenses 1,687,500 Contribution margin 2,062,500 Fixed expenses 950,000 Net
The following is Antisdale Corporation's contribution format income statement for last month:
Sales | $ 3,750,000 | |
Variable expenses | 1,687,500 | |
Contribution margin | 2,062,500 | |
Fixed expenses | 950,000 | |
Net operating income | $ 1,112,500 |
The company has no beginning or ending inventories and produced and sold 60,000 units during the month.
Required:
a. What is the company's contribution margin ratio?
b. What is the company's break-even in units?
c. If sales increase by 6,000 units, by how much should net operating income increase?
d. How many units would the company have to sell to attain a target profit of $1,525,000?
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