Question: Please explain how i can compute these five question from the information in the picture 1. Calculate break-even point in units and dollars. 2. What

Please explain how i can compute these five question from the information in the picture

1. Calculate break-even point in units and dollars.

2. What is the contribution margin at break-even point?

3. Compute the number of units to be sold to earn a profit of $36,000.

4. Compute the margin of safety using original data.

5. Compute CM ratio. Compute the expected increase in monthly net operating if sales increase by $160,000 and fixed expenses do not change.

 Please explain how i can compute these five question from the

Total~ Per unit Sales ~ $1,200,000~ $80~ Less variable expenses~ $840, 000~ $56+ Contribution Margin 360,000~ $24~ Less fixed expenses~ 300,000~ Net Operating income $60,000 Required: 1. Calculate break-even point in units and dollars. ~ 2. What is the contribution margin at break-even point?~ 3. Compute the number of units to be sold to earn a profit of $36,000.~ 4. Compute the margin of safety using original data. 5. Compute CM ratio. Compute the expected increase in monthly net operating if sales increase by $160,000 and fixed expenses do not change

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!