Gary Manufacturing Company Income Statement For the year Ended December 31, 2024 Sales (40,000 units) $1,000,000 Variable expenses $600,000 Contribution margin $400,000 Fixed expenses $200,000 Income before taxes expense $200,000 Income taxes expense (30%) $(60,000) Net Income $140,000 Instructions.

1. Calculate the contribution margin ratio and contribution ratio per unit. 

2. What was the company's break-even point in sales dollars and units in 2024? 

3. How many additional units would the company have had to sell in 2024 to earn a net income of $245,000?

Answer rating: 100% (QA)

1 Contribution Margin Ratio and Contribution Margin per Unit Contribution Margin Ratio Contribution ... View the full answer