Question:
The following is Alsatia Corporation's contribution format income statement last month:
Sales : $1,644,500
Variable expenses: 920,000
Contribution margin: 724,500
Fixes expenses: 359,100
Net operating income: $ 365,400
The company has no beginning or ending inventories and produced and sold 11,500 units during the month
a) What is the company contribution margin ratio ? (Round answer to 3 decimal places
b) What is the company break-even in units ?
c) If sales increase by 140 units, by how much should net operating income increase ?
d) How many units would the company have to sell to attain target profits of $396,900
e) What is the company margin of safety in dollars ?