Solution-What was the break-even point

What was the break-even point

Reference no: EM132608108

Question - A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000.

a. What was the break-even point?

b. What was the operating income?

c. If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional operating income can be earned by increasing sales by $110,000?

Reference no: EM132608108

Questions Cloud

Research to identify the characteristics and behaviors : Do some research to identify the characteristics and behaviors that made Welch so admired. Can you see drawbacks to his management style?

Compute the equivalent units for materials : If Martin Manufacturing uses the FIFO method of process costing, compute the equivalent units for materials and conversion respectively for Forming Department

Evaluate what are the trends on a common-size basis : Evaluate What are the trends on a common-size basis? What would be your next steps in completing a thorough analysis of the trends?

New instrument for evaluating overall postgraduate students : Suppose the state department of education has developed a new instrument for evaluating overall postgraduate students' performance

What was the break-even point : A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000. What was the break-even point

Choose two of the philosophical paradigms : Choose two of the philosophical paradigms, and compare and contrast their ontological, epistemological and methodological paradigms.

Different social and cultural views of human sexuality : Write a paper of analyzing different social and cultural views of human sexuality. Select two historical perspectives on human sexuality listed in the text.

Why you may be in compliance or simply defend your company : Read "Case Studies of Age Discrimination in Job Ads". Select two out of the five case studies and present your defense strategy as if you were the HR.

What is the purpose of the study : Working mothers with infants have no choice but to leave their kids with childcares. However, with the current adverse reporters

User Account

All Pages

What was the break-even point

Reference no: EM132608108

Reference no: EM132608108

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT