Homework SourseCM Ratio Unit Sales to Break Even Degree of operating leve
CM Ratio% ?
Unit Sales to Break Even ?
Degree of operating leverage ?
Req 2)
Unit Sales to Break Even ?
Degree of operating leverage ?
Req 2)
CM Ratio% ?
Unit Sales to Break Even ? balls
Req 3)
If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the sane net operating income, $97000, as last year?
# of balls ... ?
Req 4) Selling Price
Req 5)
CM Ratio %
Unit Saes to break even
Req 6a)
Number of balls
Req 6b)
Contribution Income Statement:
Solution
1.
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| Sales | $ 900,000 |
| Variable Expenses | $ 540,000 |
| Contribution Margin | $ 360,000 |
| Fixed Expenses | $ 263,000 |
| Net Operating income | $ 97,000 |
| CM Ratio (360000/900000) | 40% |
| Break Even Sales Dollar(263000/40%) | $ 657,500 |
| Break Even Sales Units(657500/25) | 26,300 |
