Question: Problem 4 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 4 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 and dollars? b) Prepare a CM format income statement at BE. c) Compute the CM Ratio. a) Refer to original data. Compute the operating income if the sales price per unit is decreased by 10%, sales volume is increased by 15%, total fixed cost is decreased by 20%. and variable cost remain the same
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