Question: Provided you are given the following Contribution Margin Income Statement for your farm: Per unit Total Sales (9000 units) 45 405000 Less Variable Cost 15

Provided you are given the following Contribution Margin Income Statement for your farm:

Per unit

Total

Sales (9000 units)

45

405000

Less Variable Cost

15

135000

Contribution Margin

30

270000

less Fixed Cost

60000

Operating income

210000

  1. Compute the sales volume required to attain the following:

Breakeven point (5 marks)

A target income equaling to 50% of sales (5 marks)

A target income of $180,000 before tax (5 marks)

A target income of $180,000 after tax (%50 tax rate) (5 marks)

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