Question
Total per unit % of sales sales (40,000 packages) $160,000 $4.00 100% variable expenses $60,000 $1.50 37.50% contribution margin $100,000 $2.50 62.50% fixed expenses $12,250
| Total | per unit | % of sales | |
| sales (40,000 packages) | $160,000 | $4.00 | 100% |
| variable expenses | $60,000 | $1.50 | 37.50% |
| contribution margin | $100,000 | $2.50 | 62.50% |
| fixed expenses | $12,250 | ||
| net operating income | $87,750 |
1. If sales increased by 50%, what percentage would net operating income change by?
2. What is the company's degree of operating leverage?
3. How many units would need to be sold to achieve a net income of $150,000?
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Frank Woods Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
13th Edition
1292085053, 9781292085050
