CM Ratio% ? Unit Sales to Break Even ? Degree of operating leverage ? Req 2) Uni

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CM Ratio% ? Unit Sales to Break Even ? Degree of operating leverage ? Req 2) Unit Sales to Break Even ? Degree of operating leverage ? Req 2) CM Ratio% ? Unit Sales to Break Even ? balls Req 3) If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the sane net operating income, $97000, as last year? # of balls ... ? Req 4) Selling Price Req 5) CM Ratio % Unit Saes to break even Req 6a)    Number of balls Req 6b) Contribution Income Statement:

Explanation / Answer

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Sales $        900,000 Variable Expenses $        540,000 Contribution Margin $        360,000 Fixed Expenses $        263,000 Net Operating income $          97,000 CM Ratio (360000/900000) 40% Break Even Sales Dollar(263000/40%) $        657,500 Break Even Sales Units(657500/25)               26,300

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