Do up a contribution margin income statement

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Reference no: EM132824113

B&B produces and sells one single product: BT5. The production capacity of B&B is 65,000 units. Annual sales volume expected in 2021 is 50,000 units.

The following information is estimated for 2021: selling price per unit: $25, variable cost per unit: $16, and annual fixed costs: $324,000.

Required:

Problem 1: What is the BEP in sales dollars?

Problem 2: Do up a contribution margin income statement for the expected sales in 2021.

Problem 3: What would be the firm's profit if 42,000 units are sold in 2021?

Problem 4: What would be the BEP in units if selling price increases by $3 and the expected sales in 2021 is 50,000 units?

Reference no: EM132824113

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