TODD Candle Co. produces scented candles. Their most recent income statement is as follows: All Amounts in
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Question:
TODD Candle Co. produces scented candles. Their most recent income statement is as follows:
All Amounts in Thousands of US $
Revenue $2,400
Variable cost @
$3 per candle 900
Fixed costs 600
Depreciation 400
EBIT 500
Income taxes @ 40% 200
Net Income $300
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What is the contribution margin per unit?
What is Accounting Breakeven expressed in number of units sold?
What is the degree of operating leverage?
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