Question
The following is Pinecrest Corporation's contribution format income statement for last month: Sales $1,400,000 Less: variable expenses 900,000 Contribution margin 500,000 Less: fixed expenses 300,000
The following is Pinecrest Corporation's contribution format income statement for last month:
Sales | $1,400,000 |
Less: variable expenses | 900,000 |
Contribution margin | 500,000 |
Less: fixed expenses | 300,000 |
Operating income | $200,000 |
The company has no beginning or ending inventories and produced and sold 10,000 units during the month. a) What is the company's break-even in units? 4 POINTS b) If sales increase by 100 units, by how much should operating income increase? 4 POINTS c) How many units would the company have to sell to attain target operating income of $225,000? 4 POINTS d) What is the company's margin of safety in dollars? 3 POINTS e) What is the company's degree of operating leverage? 3 POINTS
Pls show calculations do without excel
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