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Find CM ratio and Break even point in unit sales

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Reference no: EM132632427

Question - Find CM ratio, Break even point in unit sales, and Break even point in dollar sales from:

Original Info:

Sales (13,300 units × $20 per unit) $266,000

Variable expenses 159,600

Contribution margin 106,400

Fixed expenses 118,400

Net operating loss $(12,000)

Situation: Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $57,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage.

Reference no: EM132632427

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