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In March, James Electronics had sales of $$2,680,000(26,800$ units$),$ total variable expenses of $$1,608,000,$ and total fixed expenses of $$890,000.$

Required:

What is the company's CM ratio?

Answer is complete and correct.

CM ratio

$40$

$2.$ Using the CM ratio, calculate the break$-$even level of sales in dollars.

Answer is complete and correct.

Break$-$even level of sales in dollor

$$2,225,000$

$3.$ What is the break$-$even level of sales in units?

Answer is complete but not entirely correct.

Break$-$even level of sales in units

$22,500$

units

$4.$ Estimate the change in the company's operating income if it increased its total sales by $$690,000.$

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