Sales (18,000 units) Varlable expenses Contribution margin Fixed expenses $ 360, 000 144,000 216,000 180,000 $ 36,00e Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even point in sales dollars.

Sales (18,000 units) Varlable expenses Contribution margin Fixed expenses $ 360, 000 144,000 216,000 180,000 $ 36,00e Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even point in sales dollars.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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Question

Sales (18,00e units)
Variable expenses
Contribution margin
Fixed expenses
$ 368,008
144,e00
216,eee
188,eee
$ 36,000
Operating incone
Required:
Answer each question Independently based on the original data:
1. What is the product's CM ratio?
2 Use the CM ratio to determine the break-even polnt in sales dollars.

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