Tiger Corp. produces a single product. Data containing that product appears below:

|Selling price per unit|$90

|Variable cost per unit|$60

|Contribution margin|$30

Fixed costs are $270,000. The company is currently selling 10,000 units.

Required:

A. Compute the cost volume profit analysis format for the income statement.

B. Compute the break-even for both dollars and units from the above information.

C. Compute the Margin of Safety in S and the Margin of Safety percent.

D. Compute the degree of operating leverage. If sales drop 20% what will be the impact on net income?

Answer rating: 100% (QA)

A CostVolumeProfit CVP Analysis Format for the Income Statement Sales Revenue 10000 units 90 900000 ... View the full answer