13) Ploeger Corporation has provided the following contribution format income st

Question

13) Ploeger Corporation has provided the following contribution format income statement.A that the following information is within the relevant range. 13) Sales (4,000 units) Variable expenses Contribution margin Fixed expenses Net operating income S 240,000 156,000 84,000 81,900 2,100 The break-even point in dollar sales is closest to: B) $156,000 $234,000 D) $237,900 A) $0 statement. A: 14) 14) Mishoe Corporation has provided the following contribution format income that the following information is within the relevant range. S 50,000 32,500 Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 12,250 5,250 keven point in unit sales is closest to: B) 0 units C) 895 units D) 650 units A) 700 units

Explanation / Answer

13 Contribution margin ratio = 84000/240000= 35% Break even point in sales dollars = Fixed expenses/Contribution margin ratio =81900/35%= 234000 Option C is correct 14 Unit contribution margin = 17500/1000 = 17.5 Break even point in units = Fixed expenses/Unit Contribution margin =12250/17.5= 700 Option A is correct

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