Question
The following is Arkadia Corporation's contribution format income statement for last month: Sales $1,200,000 Less variable expenses 800,000 Contribution margin 400,000 Less fixed expenses 300,000
The following is Arkadia Corporation's contribution format income statement for last month:
| Sales | $1,200,000 |
| Less variable expenses | 800,000 |
| Contribution margin | 400,000 |
| Less fixed expenses | 300,000 |
| Net income | $ 100,000 |
The company has no beginning or ending inventories and produced and sold 20,000 units during the month.
Required:
a. What is the company's contribution margin ratio?
b. What is the company's break-even in units?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Taxation For Business And Investment Planning 2018
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan
21st Edition
978-1259713729
