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Compute the contribution margin ratio

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Reference no: EM131800198

Question - Legal Beagals Inc. is a legal services firm that files incorporation papers for small businesses. They charge $1,000 per application. This year's income statement shows the following:

Sales $1,440,000 Variable Expenses $1,008,000 Contribution margin $432,000 Fixed costs $250,000 Profit $182,000.

Required:

(a) Compute the break-even point in units.

(b) Compute the contribution margin ratio.

(c) Compute the current margin of safety.

(d) How many applications must the company sell to make a profit of $350,000?

Reference no: EM131800198

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