Discuss the below:
Q1. The break-even point in units can be obtained by dividing total fixed expenses by the contribution margin ratio.
Q2. If two companies have the same total sales and total expenses and make the same product, the volatility of net operating income with changes in sales will tend to be greater in the company with a higher proportion of fixed expenses in its cost structure.
Q3. Data concerning Carlo Corporation's single product appear below: Selling price per unit $230 Variable expense per unit $69 Fixed expense per Unit $466,900 The break-even in monthly dollar sales is closest to:
Q4. Sensabaugh Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales(1,800 units) $91,800 Variable Expense $176,400 Contribution margin $82,800 Fixed expense $59,100 Net operating income $23,700 If the company sells 1,600 units, its total contribution margin should be closest to