Reference no: EM131819664
Capstone, INC, produces memory enhancement kits for tax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below:
Sales (13,500 unit's X at $20 per unit ..................................... $270,000
Variables expenses ................................................................$189,000
Contribution margin ...............................................................$81,000
Fixed expenses .....................................................................$90,000
Net operating loss .................................................................($9,000)
Required:
1. Compute the company's CM ratio and its break-even point in both units and dollars.