Question: Problem 2 A company has provided the following data: Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000
Problem 2 A company has provided the following data: Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 a) Compute the breakeven sales in units? b) Prepare a CM format income statement at BE. c) Compute the CM ratio. ) Refer to the original data. Comnute the operating income if the sales volume decrease 10%, total fixed cost increases by 20%, and all other factors remain the same
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
