DATA

Description Amount

Sales price per unit

Variable cost per unit

Contribution margin per unit

Total fixed costs

Profit at breakeven

Target profit

Requirement $1$

Use the contribution margin approach to compute the company's monthly breakeven in units.

Breakeven in Units

Requirement $2$

Use the contribution margin ratio approach to compute the breakeven point in sales dollars.

Contribution margin ratio

Breakeven in Dollars

Requirement $3$

Use the contribution margin approach to compute the monthly sales level $($in units$)$ required to earn a target operating income of $$5,000.$

Target sales level $($in units$)$

Requirement $4$

Use the current sales volume to calculate the projected operating income.

Sales Revenue

Variable Costs

Contirbution Margin

Fixed Costs

Operating Income