Black Pearl, Inc., sells a single product. The company's most recent income statement is given below.

Required:
a.Contribution margin ratio is________%
b.Breakeven point in total sales dollars is$ ________
c.To achieve $40,000 in operating income, sales must total$ ________
d.If sales increase by $50,000, operating income will increase
by$ ________
e.To achieve a $40,000 after tax income, given a tax rate of
20%, sales must total$________

Question

Black Pearl, Inc., sells a single product. The company's most recent income statement is given below.
  
Required:
a.Contribution margin ratio is________%
b.Breakeven point in total sales dollars is$ ________
c.To achieve $40,000 in operating income, sales must total$ ________
d.If sales increase by $50,000, operating income will increase
by$ ________
e.To achieve a $40,000 after tax income, given a tax rate of
20%, sales must total$________

Quizplus · Accepted Answer

The Answer of Black Pearl, Inc., sells a single product. The company's most recent income statement is given below.
  
Required:
a.Contribution margin ratio is________%
b.Breakeven point in total sales dollars is$ ________
c.To achieve $40,000 in operating income, sales must total$ ________
d.If sales increase by $50,000, operating income will increase
by$ ________
e.To achieve a $40,000 after tax income, given a tax rate of
20%, sales must total$________