Maurice Tutor

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Category > Accounting Posted 29 Jul 2017 My Price 5.00

Berry Company

Berry Company produces a single product. The projected income statement for the coming year is as follows:
Sales (50,000 units @ $45) $2,250,000

 

Less: Variable costs 1,305,000

 

Contribution Margin $ 945,000

 

Less: Fixed costs 812,700

 

Operating Income $ 132,300

 


a. Compute unit margin and the units that must be sold to break even.

 

b. Suppose 30,000 units are sold above break even. What is the operating income?

 

c. Compute the contribution margin ratio and the breakeven point in dollars. Suppose that that revenue is $200,000 more than expected. What would the total operating income be?


WHAT IS THE OPERATING INCOME IF THE REVENUE INCREASES BY $200,000?

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Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 11:07 AM My Price 5.00

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