In March, James Electronics had sales of $2,500,000 (25,000 units), total variable expenses of $1,500,000, and total
Question:
In March, James Electronics had sales of $2,500,000 (25,000 units), total variable expenses of $1,500,000, and total fixed expenses of $800,000.
Required:
1. What is the company's CM ratio?
2. Using the CM ratio, calculate the break-even level of sales in dollars.
3. What is the break-even level of sales in units?
4. Estimate the change in the company's operating income if it increased its total sales by $600,000.
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Step by Step Answer:
1 The companys contribution margin CM ratio is 2 The breake...View the full answer
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