Compute the unit contribution margin

Reference no: EM13127636

Coastal Carolina Company produces a single product. the projected income statement for the coming year, based on sales of 100,000 units, is as follows: Sales 2,000,000 Less:Variable costs 1,000,000 contribution margin 900,000 less: fixed costs 765,000 oerating income 135,000

Required:
1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit?
2. compute the conribution margin ratio and the break even point in dollars. Supose that revenues are 200,000 greater than expected. what would the total profit be?
3. compute the margin of safety.
4. compute the operating leverage. compute th enew profit level if sales are 20 percent igher than expected.
5. how many units must be sold to earn a profit equal to 10 percent of sales?
6. asume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?

Reference no: EM13127636

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