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Use the following information to answer questions 9-11: Falconi Company's most recent contribution format income statement is shown below: Total Per Unit $ 400,000 $20.00
Use the following information to answer questions 9-11: Falconi Company's most recent contribution format income statement is shown below: Total Per Unit $ 400,000 $20.00 Sales (20,000 units) Less: Variable expenses(240,000) (12.00) Contribution margin Less: Fixed expenses (70,000) Net operating income 160,000 S 8.00 $ 90,000 9) What is the company's break-even point in dollar sales? A) $8,750 B) $116,667 C) $175,000 D) $225,000 10) What is the company's margin of safety? A) $90,000 B) $175,000 C) $400,000 D) $225,000 1) If the selling price decreases by $2.00 per unit, andthe sales volume increases by 20%, what would be the new net operating income? A) $70,000 B) $74,000 C) $90,000 D) $80,000 The break-even in units sold will decrease if there is an increase in: A) unit sales volume. B) contribution margin. C) total fixed expenses. D) unit variable expenses
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