Question
The following is Tucker Inc.'s contribution format income statement for last month: Sales $800,000 Less variable expenses 300,000 Contribution margin 500,000 Less fixed expenses 400,000
The following is Tucker Inc.'s contribution format income statement for last month: Sales $800,000 Less variable expenses 300,000 Contribution margin 500,000 Less fixed expenses 400,000 Net income $100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. If the number of units sold increases by 10%, how much will net income increase? If sales increase by 200 units, by how much should net income increase? 10000 How many units would the company have to sell to attain target profits of $120,000 based on selling 10,000 units? What is the contribution margin ratio when 10,000 units are sold? Do not show as a percentage, show as a decimal to two decimal places (For example: 0.XX) What is the break-even in sales dollars when 10,000 units are sold? What is the break-even in units when 10,000 units are sold? What is the margin of safety in dollar when 10,000 units are solds? What is the company's margin of safety percentage when 10,000 units are sold? Do not show as a percentage, show as a decimal to two decimal places (For example: 0.XX) What is the degree of operating leverage when 10,000 units are sold?
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