Question
The following is Lowkey Corp.s' controbution format income statement for last month: Sales in units 20, 000 Sales $ 2, 000, 000 variable expenses 1,200,000
The following is Lowkey Corp.s' controbution format income statement for last month:
Sales in units 20, 000
Sales $ 2, 000, 000
variable expenses 1,200,000
Fixed expenses 280,000
a) Fill in the below info:
b) What is the company's break-even point in unit sales using the formula method.
c) What is the company's break-even point in dollar sales using formula method
d) How many units would the company have to sell to attain target operating profits of $160, 000?
e) How many units would the company have to sell to attain target net income of $60,000, knowing that the company's tax rate is 25%?
Selling price per unit Variable expense per unit Fixed expense per unit Contribution margin per unit Contribution margin ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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