The following is last month's contribution format income statement:
What is the company's break-even in unit sales?
Riven Corporation has a single product whose selling price is $10. At an
expected sales level of $1,000,000, the company's variable expenses are
$600,000 and its fixed expenses are $300,000. The marketing manager has
recommended that the selling price be increased by 20%, with an expected
decrease of only 10% in unit sales. What would be the company's net operating
income if the marketing manager's recommendation is adopted?
Lineman Corporation sells a product for $230 per unit. The product's current
sales are 23,400 units and its break-even sales are 20,124 units.
What is the margin of safety in dollars?
A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixed
expenses are $120,000. How many units must be sold to yield a profit of
Seyal Inc.'s contribution margin ratio is 55% and its fixed monthly expenses are
$34,000. Assuming that the fixed monthly expenses do not change, what is the
best estimate of the company's net operating income in a month when sales are
Data concerning Grodi Corporation's single product appear below: