Find How much does the business need to sell to break even

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Reference no: EM132755245

Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions.

Sales                                $866,000
Fixed cost                         $529,000
Total variable cost               215,740
Total cost                           744,740
Net income                          $121,260

Problem (a) How much is the contribution margin and the contribution rate?

Problem (b) How much does the business need to sell to break even?

Problem (c) If the business was to spend ?$25,000 to upgrade their processes, how much does the business need to sell to break even?

Problem (d) If 1% more meals were sold, what would be the resulting net income?

Reference no: EM132755245

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