Question - Cost Volume Profit
Income statement - for year ending Dec 2017
Sales (20,000 units) $600,000
Variable Expense $360,000
Contribution margin $240,000
Fixed expense $150,000
Net income $ 90,000
Questions:
1. What is the company break-even point?
2. How many more units would the company have had to sell to earn net income of $150,000 in 2017?
3. If the company expects a 25% increase in sales in 2018, what would be the expected net income in 2018?
4. How much sales dollars would the company have to generate in order to earn a target ne income of $160,000 in 2018?