The operating budget of the Bea Company contains the following information:

(a) Compute
(i) The contribution margin;
(ii) The contribution rate.
(b) Compute the break-even point
(i) As a percent of capacity;
(ii) In sales dollars.
(c) Draw a detailed break-even chart.
(d) Determine the break-even point in sales dollars if fixed costs are reduced by $11 200, while variable costs are changed to 72% of sales.

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Sales at 80% $400 000 of capacity Fixed costs Variable costs Total costs Net income $105 000 260000 365 000 $ 35 000