0 | ezto.mheducation.com/hm.tpx value 10.00 points Faxmatic, Inc., produces memo

Question

0 | ezto.mheducation.com/hm.tpx value 10.00 points Faxmatic, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below: Sales (13,500 units at $20 per unit) Variable expenses $270,000 162,000 Contribution margin Fixed expenses 108,000 120,000 Net operating loss $ (12,000) Required 1. Compute the company's CM ratio and its break-even point in both units and dollars. CM ratio Break-even point in units Break-even point in dollars

Explanation / Answer

Please provide more clear image for 2nd ad 3rd part

Amount Per unit Sales 270000 20 Variable expense 162000 12 Contribution margin 108000 8 Fixed expense 120000 Net operating loss -12000 1 Contribution margin ratio = Contribution margin / sales CM ratio 8/20 40% 2 Break even in units = Fixed expense / contribution margin per unit Fixed expense 120000 Contribution per unit 8 Break even in units 15000 Units 3 Breakeven in dollars = Fixed expense / contribution margin ratio Fixed expense 120000 Contribution margin ratio 40% Break even in Dollars 300000 (120000/40%)

Related Questions

Navigate

• Browse (All)
• Browse
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.