Question - Poloskie Manufacturing Inc. has provided you with the following Cost-Volume-Profit Income Statement.
Sales (1,000 units) $650,000
Variable costs:
Cost of goods sold $300,000
Selling expenses 55,000
Administrative expenses 43,000
Contribution margin 252,000
Fixed costs:
Cost of goods sold 115,000
Selling expenses 35,000
Administrative expenses 20,000
Operating income $82,000
Calculate contribution margin ratio.
Calculate the break-even point in sales dollars and number of units.