(Answered) Question - cost volume profitincome statement

Accounting

Question - Cost Volume Profit

Income statement - for year ending Dec 2017

Sales (20,000 units) $600,000

Variable Expense $360,000

Contribution margin $240,000

Fixed expense $150,000

Net income $ 90,000

Questions:

1. What is the company break-even point?

2. How many more units would the company have had to sell to earn net income of $150,000 in 2017?

3. If the company expects a 25% increase in sales in 2018, what would be the expected net income in 2018?

4. How much sales dollars would the company have to generate in order to earn a target ne income of $160,000 in 2018?

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