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

Required:
a. Contribution margin ratio is ________ %
b. Break-even point in total sales dollars is $ ________
c. To achieve $40,000 in operating income, sales must total $ ________
d. If sales increase by $50,000, net income will increase by $ ________

Question

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

Required:
a. Contribution margin ratio is ________ %
b. Break-even point in total sales dollars is $ ________
c. To achieve $40,000 in operating income, sales must total $ ________
d. If sales increase by $50,000, net income will increase by $ ________

Quizplus · Accepted Answer

The Answer of Blankinship, Inc., sells a single product. The company's most recent income statement is given below.

Required:
a. Contribution margin ratio is ________ %
b. Break-even point in total sales dollars is $ ________
c. To achieve $40,000 in operating income, sales must total $ ________
d. If sales increase by $50,000, net income will increase by $ ________