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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?
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