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Stratford Company distributes a lightweight lawn chair that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 annually.
Required:
1. What is the product's CM ratio? (Do not round intermediate calculations.) CM ratio - 50%

2. Use the CM ratio to determine the break-even point in sales dollars. (Do not round intermediate calculations. Round your answer to the nearest dollar amount. )
Break-even point in sales dollars -$ 360000

3. The company estimates that sales will increase by $53,000 during the coming year due to increased demand. By how much should net operating income increase?
Net operating income increases by $ ( )
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Hey jzshadow84 Attached is the solution of part 3 of the given question Please accept the answer... View the full answer

Increase in income - part 3.xlsx

Stratford Company distributes a lightweight lawn chair that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 annually.
The company estimates that...

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