The companies contribution Income statement for the next year is given: sales(20000 Units) =$200000 less: variable expense =($900000) contribution margin = $300000 less : fixed cost =($240000) Net operating income = $ 60000 

Instructions: 

1. calculate the company sale ratio and variable expense ratio. 

2. Compute the company break even points in both unit sales and dollar sales. 

3. Assume that sales increase $400000 next year,by how much company's net operating income will increase

Answer rating: 100% (QA)

1 Sales Ratio and Variable Expense Ratio Sales Ratio Contribution Margin Ratio This ratio indicates the portion of each sales dollar that contributes to covering fixed costs and generating profit Sale... View the full answer