Break even point-operating income


A company has a margin of safety of 25%, a contribution marginratio of 30%, and sales of $1,000,000.

a) What is the break even point?

b) What was the operating income?

c) If neither the relationship between variable costs andsales nor the amount of fixed costs is expected to change in thenext year, how much additional operating income can be earnedby increasing sales by $110,000?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Break even point-operating income
Reference No:- TGS0555713

Expected delivery within 24 Hours