Question: Sales $60,000 Less: Variable Expenses 45,000 Contribution Margin 15,000 Less: Fixed Expenses 18,000 Net Income -$3,000 a. What are the total sales in dollars at

Sales	$60,000
Less: Variable Expenses	45,000
Contribution Margin	15,000
Less: Fixed Expenses	18,000
Net Income	-$3,000

a. What are the total sales in dollars at the break-even point?

b. What are the total variable expenses at the break-even point?

c. What is the company's contribution margin ratio?

d. If unit sales were increased by 10% and fixed expenses were reduced by $2,000, what would be the company's expected net income? (Prepare a new income statement.)

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