1)Ehrlich Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units to 5,000 units): Contribution Margin Income Statement Sales $ 48,000 Variable expenses 30,000 Contribution margin 18,000 Fixed expenses 10,000 Net operating Income $ 8,000 If sales decline to 1,300 units, what would be the net operating income (loss)? If the selling price increases by $3 per unit and the sales volume decreases by 100 units, what would be the net operating income? What is the break-even point in unit sales? What is the break-even point in dollar sales?

1) Ehrlich Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units to 5,000 units): Contribution...

Ehrlich Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units to 5,000 units):

Contribution Margin Income Statement
Sales	$ 48,000
Variable expenses	30,000
Contribution margin	18,000
Fixed expenses	10,000
Net operating Income	$ 8,000

If sales decline to 1,300 units, what would be the net operating income (loss)?

If the selling price increases by $3 per unit and the sales volume decreases by 100 units, what would be the net operating income?

What is the break-even point in unit sales?

What is the break-even point in dollar sales?

Jun 11, 2022

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1) Ehrlich Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units to 5,000 units): Contribution...

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