Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income Contribution Style statement of Frog Enterprises for 2019 appears below. FROG ENTERPRISES Income Statement For the Year Ended December 31, 2019 Sales (50,000
The income Contribution Style statement of Frog Enterprises for 2019 appears below. FROG ENTERPRISES Income Statement For the Year Ended December 31, 2019 Sales (50,000 units) Variable expenses .... Contribution margin Fixed expenses Net income (loss) $1,500,000 1,125,000 375,000 400,000 $ (25,000) Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers: 1. What was the company's break-even point in sales dollars in 2019? 2. How many units would the company have had to sell in 2019 in order to earn net income of $60,000? 3. If the company is able to reduce variable costs by $3.00 per unit in 2019 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $60,000
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