Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit.
Complete the following problems using the following ratios:
Sales level at which operating income is zero
o If sales above breakeven, then profit
o If sales below breakeven, then loss
o Fixed expenses = total contribution margin
Total sales = total expenses
Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit
Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio
Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit.
15,000+120,000 / 60 = 17,000 Please let me know is my answer is correct. If not please correct me.
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