Question: Wiechart Industries had provided the data below. Assume the information is within the relevant range. Sales $320,000 Variable Expenses 192,000 Fixed Expenses 121,600 Net Operating
Wiechart Industries had provided the data below. Assume the information is within the relevant range.
Sales $320,000
Variable Expenses 192,000
Fixed Expenses 121,600
Net Operating income 6,400
ANSWER THE FOLLOWING: Briefly show how you arrived at your answer.
1. What is the Break-even point in units?
2. What is the current Margin of Safety?
3. What is the contribution margin ratio?
4. By what amount will net operating income increase if sales increase by $2,000?
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