Question
The following is Unique Ltd.'s contribution margin income statement for the year. Sales$3,800,000Variable expenses2,660,000Contribution margin1,140,000Fixed expenses400,000Operating income$740,000 Unique Ltd. sold 15,200 units during the year.
The following is Unique Ltd.'s contribution margin income statement for the year.
Sales$3,800,000Variable expenses2,660,000Contribution margin1,140,000Fixed expenses400,000Operating income$740,000
Unique Ltd. sold 15,200 units during the year.
Required:
Using cost-volume-profit analysis, answer the following questions.
What is the company's contribution margin ratio?
What is the company's breakeven sales in units?
If sales increase by 200 units, by how much would operating income increase?
How many units would the company have to sell to attain target operating income of $425,000?
What is the company's margin of safety in dollars?
What is the company's degree of operating leverag
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
Horngrens Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
10th Edition
0133117561, 978-0133117561
