Reference no: EM132960121
BPN Company's most recent monthly contribution format income statement is given below:
Sales $160,000
Less: variable expenses 100,000
Contribution margin 60,000
Less: fixed expenses 63,000
Operating income (3,000)
The company sells its only product for $10 per unit. There were no beginning or ending inventories.
Required:
Problem a. What is the company's contribution margin ratio?
Problem b. What are total sales in dollars at the break-even point?
Problem c. What are total variable expenses at the break-even point?
Problem d. If unit sales were increased by 10% and fixed expenses were reduced by $2,000, what would be the company's expected operating income?
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