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The following information related to K-Zone company during the year 2021:
Number of units sold 50,000 units
Total Sales revenue $1,500,000
Variable cost $18 per unit
Fixed cost $6 per unit
Target profit $100,000
1- Calculate the breakeven point in units.
2- Calculate the breakeven point in dollars.
3- Calculate the number of units to achieve the target profit.
4- Calculate sales revenue to achieve target profit.
5- Calculate the margin of safety in units.
6- Calculate the degree of operating leverage.
7- Prepare the income statement by using the contribution method.
8- Draw the contribution margin graph.
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