Question: 1. prepare a contribution format income statement for the company as a whole. 2. Compute the overall break-even in dollars for the company based on

 1. prepare a contribution format income statement for the company as

a whole. 2. Compute the overall break-even in dollars for the company

1. prepare a contribution format income statement for the company as a whole.

2. Compute the overall break-even in dollars for the company based on current sales mix.

3. Compute the overall break-even point in units for the company based on the current sales mix.

4. If sales increase by $50,000 per month. by how much would you expect operating income to increase? What are your assumptions?

5. If sales increase by 5,000 units per month, by how much would you expect operating income to increase? What are your assumptions?

i need step by step explsnation plus answer thanks.

Basic $600.000 60% $ 9.00 Deluxe $400,000 35% $ 11.50 Total $1.000.000 2 Sales Contribution margin ratio Contribution margin per unit ? The company's fixed expenses total $400.000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. Compute the overall break-even point in dollars for the company based on the current sales mix Compute the overall break-even point in units for the company based on the current sales mix 3. 4. crease? What are your assumptions? If sales increase by $50,000 per month, by how much would you expect operating income to in- 5. It sales increase by 5,000 units per month, by how much would you expect operating income to increase? What are your assumptions

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!