Wildhorse sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The companyincome statement from last month is as follows:TotalPer UnitSales revenue$700,000$50Variable expenses315,00022.50Contribution margin385,000$27.50Fixed expenses264,000Operating income$ 121,000 Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.)$Breakeven sales

Break-even point is the point at which the entity does not make any profit or loss That is Selling…

Answered: Compute breakeven sales. (Use the…

Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) Breakeven sales $ %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Wildhorse sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company
income statement from last month is as follows:
Total
Per Unit
Sales revenue
$700,000
$50
Variable expenses
315,000
22.50
Contribution margin
385,000
$27.50
Fixed expenses
264,000
Operating income
$ 121,000

Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.)
$
Breakeven sales

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