Question: i cannot answer this question, i have been at it for an hour! please help! Practice #2-No unit costs: Here is the income statement from
Practice #2-No unit costs: Here is the income statement from last month: Sales $1,050,000 ($735,000) $315,000 ($210,000) $105,000 Variable Expenses Contribution Margin Fixed Expenses Operating income cMA- 3 a. What is the breakeven point in sales dollars? b. What level of sales do we need to make a profit of $100,000? Prove your answer with a contribution income statement. C. We are putting all of our goods on sale at 12.5% off. What is the new CM Ratio? d. Using the new CM ratio, what level of sales do we need to make a Prove your answer with a contribution income statement profit of $100,000? e. Which do you think willl work better - b or d? Fixed ExpensesS100,000 CMR 1-1 007000 P 3
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