Berry Company produces a single product. The projected income statement for the coming year is as follows:
Sales (50,000 units @ $45) $2,250,000
Less: Variable costs 1,305,000
Contribution Margin $ 945,000
Less: Fixed costs 812,700
Operating Income $ 132,300
a. Compute unit margin and the units that must be sold to break even.
b. Suppose 30,000 units are sold above break even. What is the operating income?
c. Compute the contribution margin ratio and the break even point in dollars. Suppose that that revenue is $200,000 more than expected. What would the total operating income be?
WHAT IS THE OPERATING INCOME IF THE REVENUE INCREASES BY $200,000????
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