Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.

Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses...

Complete the following problems using the following ratios:

Sales level at which operating income is zero
o If sales above breakeven, then profit
o If sales below breakeven, then loss
o Fixed expenses = total contribution margin
Total sales = total expenses

Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit
Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio


Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.

Jun 09, 2022