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Use the following info to answer A through E. Company A sells 10,000 units for a sales price of $50 each. The variable cost equals

Use the following info to answer A through E.

Company A sells 10,000 units for a sales price of $50 each. The variable cost equals $20 per unit. The total fixed cost equals $240,000.

A) What is the Contribution Margin for Company A in Total Dollars?; Per Unit?; and as a Percentage of Sales?

B) What is the breakeven in units and dollars?

C) What is the Margin of Safety in dollars?

D) Assuming a 4% decrease in Sales, what is the Degree of Operating Leverage?; Percentage change in Net Income?

E) Assuming a 4% decrease in sales, what will net income equal if the decrease in sales occurs?

F) Assuming management wants to achieve a Target Profit of $66,000. What would breakeven equal in units?

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