Black Pearl,Inc.,sells a single product.The company's most recent income statement is given below.
$$\begin{array} { l r }
\text { Sales } & \$ 50,000 \
\text { Less variable expenses } & { ( 30,000 ) } \
\text { Contribution margin } &{ 20,000 } \
\text { Less fixed expenses } & ( 12,500 ) \
\text { Net income } & \$ 7,500
\end{array}$$ Required:
$\begin{array} { ll }
\text {a. Contribution margin ratio is }&\_\_\_\_\% \
\text {b. Breakeven point in total sales dollars is }&\$\_\_\_\_ \
\text {c. To achieve $ \$ 40,000 $ in net income, sales must total }&\$\_\_\_\_ \
\text {d. If sales increase by $ \$ 50,000 $, net income will increase by }&\$\_\_\_\_ \
\end{array}$

Question

Black Pearl,Inc.,sells a single product.The company's most recent income statement is given below.
 $$\begin{array} { l r } 
\text { Sales } & \$ 50,000 \
\text { Less variable expenses } & { ( 30,000 ) } \
\text { Contribution margin } &{ 20,000 }  \
\text { Less fixed expenses } & ( 12,500 ) \
\text { Net income } &  \$ 7,500
\end{array}$$ Required:
 $\begin{array} { ll  }
 \text {a. Contribution margin ratio is }&\_\_\_\_\% \
 \text {b. Breakeven point in total sales dollars is }&\$\_\_\_\_ \
 \text {c. To achieve $ \$ 40,000 $ in net income, sales must total }&\$\_\_\_\_ \
 \text {d. If sales increase by $ \$ 50,000 $, net income will increase by }&\$\_\_\_\_ \
\end{array}$

Quizplus · Accepted Answer

The Answer of Black Pearl,Inc.,sells a single product.The company's most recent income statement is given below.
 $$\begin{array} { l r } 
\text { Sales } & \$ 50,000 \
\text { Less variable expenses } & { ( 30,000 ) } \
\text { Contribution margin } &{ 20,000 }  \
\text { Less fixed expenses } & ( 12,500 ) \
\text { Net income } &  \$ 7,500
\end{array}$$ Required:
 $\begin{array} { ll  }
 \text {a. Contribution margin ratio is }&\_\_\_\_\% \
 \text {b. Breakeven point in total sales dollars is }&\$\_\_\_\_ \
 \text {c. To achieve $ \$ 40,000 $ in net income, sales must total }&\$\_\_\_\_ \
 \text {d. If sales increase by $ \$ 50,000 $, net income will increase by }&\$\_\_\_\_ \
\end{array}$

Black Pearl,Inc Required