The following is ABC Corporation’s contribution format income statement for last month: Sales $1,200,000 Less: Variable expenses 800,000 Contribution…
The company has no beginning or ending inventories and produced and sold 20,000 units during the month.
Required:
If the tax rate is 30%, how many units must be sold to attain an after tax profit of $84,000?
What is the company’s break-even in units?
If sales increase by 100 units, by how much should operating income increase?
What is the company’s margin of safety in dollars?
What is the company’s degree of operating leverage?
What is the company’s contribution margin ratio?
How many units would the company have to sell to attain target operating income of $125,000?
