D.22. Basic Cost-Volume-Profit ConceptsKlamath Company produces a single product. The projected income statement for the coming year is as follows:Sales (40,000 units @ $31.00)$1,240,000Total variable cost483,600Contribution margin$ 756,400Total fixed cost816,912Operating income$ (60,512)1. Compute the unit contribution margin and the units that must be sold to break even.Unit contribution marginBreak-even units2. Suppose 10,000 units are sold above breakeven. What is the operating income?3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in salesrevenue.Contribution margin ratioBreak-even sales revenueSuppose that revenues are $200,000 more than expected for the coming year. What would the total operating incomebe?

CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…

Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (40,000 units @ $31.00) Total variable cost Contribution margin Total fixed cost Operating income $ (60,512) 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units $1,240,000 483,600 $756,400 816,912 2. Suppose 10,000 units are sold above breakeven. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. Contribution margin ratio Break-even sales revenue Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be?