Calculate the company sale ratio and variable expense ratio

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Reference no: EM132628968

The companies contribution Income statement for the next year is given:

sales(20000 Units) =$200000

less: variable expense =($900000)

contribution margin = $300000

less : fixed cost =($240000)

Net operating income = $ 60000

Instructions:

Question 1: calculate the company sale ratio and variable expense ratio.

Question 2: Compute the company break even points in both unit sales and dollar sales.

Question 3: Assume that sales increase $400000 next year, by how much company's net operating income will increase.

Reference no: EM132628968

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