Calculate the contribution margin ratio

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Problem

Contribution Margin, Break-Even Units, Break-Even Sales, Margin of Safety, Degree of Operating Leverage Aldovar Company produces a variety of chemicals. One division makes reagents for laboratories. The division's projected income statement for the coming year is: Line Item Description Amount Sales (203,000 units @ $70) $14,210,000 Total variable cost 7,105,000 Contribution margin $7,105,000 Total fixed cost 5,769,750 Operating income $1,335,250. Get the instant assignment help. Compute the contribution margin per unit, and calculate the break-even point in units. Calculate the contribution margin ratio and use it to calculate the break-even sales revenue.

Reference no: EM133928385

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