Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove...

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Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed co

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Answer 1

Answer #1

a.Contribution margin=Sales-Variable cost

=(74-50)=$24 per unit

Hence breakeven=Fixed cost/Contribution margin

=(448800/24)=18700 units

b.Target contribution margin=Fixed cost+Target income

=(448800+103200)=552000

Hence target sales=552000/24

=23000 units

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Answer 2

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