Stratford Company distributes a lightweight lawn chair that sells for $30 per unit. Variable expenses are 20% of sales, and fixed expenses total $595,200 annually. Required: Answer the following independent questions: 1. What is the product's CM per unit? Contribution margin per unit 2. Use the CM per unit to determine the break-even point in units. Break-even point in units 3. The company estimates that sales will increase by $60,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income

Stratford Company distributes a lightweight lawn chair that sells for $30 per unit. Variable expenses are 20% of sales, and fixed expenses total $595,200 annually. Required: Answer the following independent questions: 1. What is the product's CM per unit? Contribution margin per unit 2. Use the CM per unit to determine the break-even point in units. Break-even point in units 3. The company estimates that sales will increase by $60,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income

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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