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The management of Lambda Corporation has received the following forecast for the next year. Sales revenue Fixed cost Total variable cost Total cost Net income

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The management of Lambda Corporation has received the following forecast for the next year. Sales revenue Fixed cost Total variable cost Total cost Net income $600 000 $275 000 270 000 545 000 S 55 000 Capacity is a sales volume of $800 000. a. Compute i. the contribution margin; ii. the contribution rate. b. Compute the break-even point i. in dollars; ii. as a percent of capacity. c. Determine the break-even volume in dollars if fixed costs are increased by $40 000, while variable costs are held to 40% of sales

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