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

Question 114

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The Leonardo Company had the following functional income statement for the month of July 2016:
The Leonardo Company had the following functional income statement for the month of July 2016:    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 amount of sales in dollars needed to obtain a before-tax profit of $40,000? 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 amount of sales in dollars needed to obtain a before-tax profit of $40,000?

Correct Answer:

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a. $160,000/20,000 units = $8 ...

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