Question
The following is Bord Corporation's contribution margin income statement for 2019. Sales $2,700,000 Variable expenses 2,160,000 Contribution margin540,000 Fixed expenses 300,000 Operating income $240,000 Bord
The following is Bord Corporation's contribution margin income statement for 2019.
Sales $2,700,000
Variable expenses 2,160,000
Contribution margin540,000
Fixed expenses 300,000
Operating income $240,000
Bord Corporation has no beginning or ending inventories, and produced and sold 5,000 units during the year.
Question 10(1 point)
What is the company's contribution margin ratio?
Question 11(2 points)
What is the company's breakeven sales in units?
Question 12(2 points)
If sales increase by 200 units, by how much should operating income increase?
Question 13(2 points)
How many units would the company have to sell to attain target operating income of $555,000?
Question 14(2 points)
What is the company's margin of safety in dollars?
Question 15(1 point)
What is the company's degree of operating leverage?
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