The Waldo Company had the following functional income statement for the month of July 2004:
There were no beginning and ending inventories.
Required:

a.
Calculate the contribution margin per unit.
b.
Calculate the contribution margin ratio.
c.
What is the break-even point in units?
d.
What is the monetary amount of sales in needed to obtain a before-tax profit of £40,000?

Question

The Waldo Company had the following functional income statement for the month of July 2004:
There were no beginning and ending inventories.
Required:
  
a.
Calculate the contribution margin per unit.
b.
Calculate the contribution margin ratio.
c.
What is the break-even point in units?
d.
What is the monetary amount of sales in needed to obtain a before-tax profit of £40,000?

Quizplus · Accepted Answer

The Answer of The Waldo Company had the following functional income statement for the month of July 2004:
There were no beginning and ending inventories.
Required:
  
a.
Calculate the contribution margin per unit.
b.
Calculate the contribution margin ratio.
c.
What is the break-even point in units?
d.
What is the monetary amount of sales in needed to obtain a before-tax profit of £40,000?

The Waldo Company Had the Following Functional Income Statement for the Month