Homework Answers
| a | ||
| Sales | 60500 | |
| Variable expenses | 49610 | =60500*(1-18%) |
| Contribution margin | 10890 | |
| Fixed expenses | 14090 | =50000+13700-49610 |
| Operating loss | (3200) | |
| b | ||
| Increase in sales | 9075 | =60500*15% |
| X Contribution margin ratio | 18% | |
| Increase in contribution margin | 1634 | |
| Previous operating loss | (3200) | |
| Operating loss | (1567) | or (1566) |
| c | ||
| Break even | 78278 | =14090/18% |
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