Question: Sales (15,000 units).... Variable Expense... Contribution Margin. Fixed Expenses...... Net Operating Income.. Question Three Refer to the original Data Amount $450,000 360,000 90,000 40,000 $50,000
Sales (15,000 units).... Variable Expense... Contribution Margin. Fixed Expenses...... Net Operating Income.. Question Three Refer to the original Data Amount $450,000 360,000 90,000 40,000 $50,000 (15 marks) a. Consider the following suggested changes for next month and prepare a new CM format Income Statement: Total FC increased by 10% Price Decreased by $2 Volume increased by 3,000 units VC per unit increased by 5%. a. Would this be a sound suggestion? Explain (1 mark) a. What is Break Even Point and why is it important? (2 marks)
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