Peterson Inc. created the follow forecast for the upcoming year. Sales $ 890,000 Variable expenses $ 489,500

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Peterson Inc. created the follow forecast for the upcoming year.

Sales $ 890,000

Variable expenses $ 489,500

Contribution margin $ 400,500

Fixed expenses $ 270,000

Operating income $ 130,500

What is the breakeven sales dollars? (3 marks)

What would the variable costs be if operating income was $219,375?

If sales increased by $100,000, by how much would operating income increase?

Related Book For answer-question

Managerial Accounting

ISBN: 978-0134128528

5th edition

Authors: Karen W. Braun, Wendy M. Tietz

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Posted Date: Feb 27, 2024 06:33 AM

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Peterson Inc. created the follow forecast for the upcoming year. Sales $ 890,000 Variable expenses $ 489,500

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Expert Answer:

To find the breakeven sales dollars you can use the formula BreakevenSalesFixedExpensesContributionM... View the full answer

Managerial Accounting

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