Reference no: EM132558807
Question - Gun Corporation has the following information for the period.
Sales (5,000 units) $300,000
Variable Expenses 240,000
Contribution Margin $60,000
Fixed Expenses 58,800
Net Operating Income $1,200
What is the company's contribution margin ratio?
What is the company's break-even point in sales dollars?
If sales increase to 5.040 units, what would be the estimated increase in net operating income?
If the selling price increases by $4 per unit and the sales volume decreases by 400 units, what would be the estimated net operating income?