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The income statement for Raple Stark Company for 2019 appears below: RAPLE STARK COMPANY Income Statement For the Year Ended December 31, 2019 Sales (25,000
The income statement for Raple Stark Company for 2019 appears below: RAPLE STARK COMPANY Income Statement For the Year Ended December 31, 2019 Sales (25,000 units). $650,000 Variable expenses. 227,500 Contribution margin.. 422,500 Fixed expenses... 439,400 Net income (loss) $(16,900 Instructions Answer the following independent questions and show computations to support your answers: a How much additional sales revenue does the company need to break even in 2019? 8 MARKS b) If the company is able to reduce variable costs by $1.25 per unit in 2020 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 $50,6507 2
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