Alpha Company's contribution margin income statement is shown below: Units sold 30,000 Sales $450,000 Variable costs 330,000
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Question:
Alpha Company's contribution margin income statement is shown below:
Units sold 30,000
Sales $450,000
Variable costs 330,000
Contribution margin 120,000
Fixed costs 80,000
Operating income 40,000
For the following questions, round off your answer to the nearest $ when applicable.
a. Calculate the breakeven point in units.
b. Calculate the breakeven point in $.
c. How many units must the company sell to earn a target profit of $100,000?
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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