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What is the company contribution margin ratio

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Reference no: EM131810402

Question - The following is Alsatia Corporation's contribution format income statement for last month:

Sales

$1,533,000

Variable expenses

924,000

Contribution margin

609,000

Fixed expenses

342,200

Net operating income

$266,800

The company has no beginning or ending inventories and produced and sold 10,500 units during the month.

Required:

a. What is the company's contribution margin ratio?

b. What is the company's break-even in units?

c. If sales increase by 130 units, by how much should net operating income increase?

Reference no: EM131810402

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