My company, Naughty Knitts, has decided to market our products more aggressively and ride the popularity...

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My company, Naughty Knitts, has decided to market our products more aggressively and ride the popularity of mittens from the Bernie memes in the media lately. Below is some of our current financial information for Naughty Knitts: Depreciation $ 30,000 Wages - knitting staff 100,000 Salary - supervisor 60,000 Advertising 30,000 Insurance on Building 20,000 Sales Commissions 100,000 Office supplies 3,000 Sales Revenues 550,000 Overtime wages - Knitting Staff 30,000 Rent on Building 35,000 Raw materials (yarn etc.) 100,000 Lease for Equipment 10,000 Required: 1. Calculate the Profit using a Contribution Margin Income Statement 2. Calculate the Break-even point in revenue dollars 3. Calculate the Cash Break-even point in dollars My company, Naughty Knitts, has decided to market our products more aggressively and ride the popularity of mittens from the Bernie memes in the media lately. Below is some of our current financial information for Naughty Knitts: Depreciation $ 30,000 Wages - knitting staff 100,000 Salary - supervisor 60,000 Advertising 30,000 Insurance on Building 20,000 Sales Commissions 100,000 Office supplies 3,000 Sales Revenues 550,000 Overtime wages - Knitting Staff 30,000 Rent on Building 35,000 Raw materials (yarn etc.) 100,000 Lease for Equipment 10,000 Required: 1. Calculate the Profit using a Contribution Margin Income Statement 2. Calculate the Break-even point in revenue dollars 3. Calculate the Cash Break-even point in dollars

Answer rating: 100% (QA)

To calculate the profit using a contribution margin income statement we need to determine the contribution margin and subtract the fixed costs from th... View the full answer