Reference no: EM132566926
Anglico's most recent income statement is given below.
Sales (8,000 units) R160,000
Less variable expenses (68,000)
Contribution margin 92,000
Less fixed expenses (50,000)
Net income R42,000
Required:
Question a. Contribution margin per unit is R ________ per unit
Question b. If sales are doubled total variable costs will equal R ________
Question c. If sales are doubled total fixed costs will equal R ________
Question d. If 20 more units are sold, profits will increase by R ________
Question e. Compute how many units must be sold to break even. ________
Question f. Compute how many units must be sold to achieve operating income of R60,000. ________
Question g. Compute the revenue needed to achieve an after tax income of R30,000 given a tax rate of 30%.