What is the companys break-even point in unitshow many more

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Reference no: EM13588414

Flip Corporation Income Statement For the Year Ended December 31, 2014

Sales (20,000 units) $600,000

Variable expenses 360,000

Contribution margin 240,000

Fixed expenses 150,000

Net income $ 90,000

Instructions: Answer the following independent questions and show computations to support your answers.

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

2. How many more units would the company have had to sell to earn net income of $150,000 in 2014?

3. If the company expects a 25% increase in sales in 2015, what would be the expected net income in 2015?

4. How much sales dollars would the company have to generate in order to earn a target net income of $160,000 in 2015?

Reference no: EM13588414

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