Answer to Question #90962 in Other Other for vivian

Question #90962
sales(29,000 units) shs 1,218,000
less variable cost 812,000
contribution margin 406,000
less fixed expenses 300,000
net income 106,000
1.compute the break even point in units and sales
2.the margin of safety.
3.suppose it increases fixed cost by 250,000 per year but lower variable cost to 45% of sales, units sold will remain unchanged. prepare a budget income statement assuming this investment is made.
what is the new break even point in units and sales, if the investment is made?
1
Expert's answer
2019-06-19T06:21:57-0400
Dear vivian, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

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