Drake companys income statement for the most recent year

Assignment Help Accounting Basics

Reference no: EM13576205

Drake Company's income statement for the most recent year appears below.

Sales (45,000 units) $1,350,000

Less: variable expenses 750,000

Contribution margin 600,000

Less: fixed expenses 375,000

Net operating income $225,000

Required:

a. Calculate the unit contribution margin.

b. Calculate the break-even point in dollars.

c. If the company desires a net operating income of $290,000, how many units must it sell?

Reference no: EM13576205

Questions Cloud

Several years ago westmont corporation developed a : several years ago westmont corporation developed a comprehensive budgeting system for profit planning and control

Why did the insurance company raise the rates so much how : in the mid-eighties the toro company launched a promotion in which snow blower purchasers could refund a portion of

Weights were measured for 5 female and 5 male beetle pupae : weights were measured for 5 female and 5 male beetle pupae. test the hypothesis of no difference in mean weight of

Jonathon age 50 and in gfood health withdrew 6000 from his : jonathon age 50 and in gfood health withdrew 6000 from his pension plan during the current year. the withdrawal was not

Drake companys income statement for the most recent year : drake companys income statement for the most recent year appears below.sales 45000

500 in def earning 55 percent 3000 in ghi earning 58 : art williams radio station manager in franklin county new jersey is in the 25 percent federal marginal tax bracket and

Georgia company borrowed 600000 from a bank on may 1 2007 : georgia company borrowed 600000 from a bank on may 1 2007. the bank required a return of 12 on the loan. the loan is to

Describe a decision-making scenario using your business : in this assignment you will reflect on decisions you made using social influence persuasion and risk taking that went

Advise kevin on whether he should refinance his mortgage : kevin tutumbo of rochester hills michigan has owned his home for 15 years and expects to live in it for five more

User Account

All Pages