Question
In: Accounting
Lincoln Company manufactures and sells small electric heaters for homes and offices. The company's income state...
Lincoln Company manufactures and sells small electric heaters for homes and offices. The company's income state for the FY2014 is given below: Sales (30,000 units) $1,800,000 Total, $60 per unit, Less variable expenses $1,440,000, $48 per unit, contribution margin $360,000, $12 per unit, less fixed expenses $264,000, Net income $96,000. b. If Lincoln Company increases its price to $100, do you expect the breakeven point in units to be more or less than the number you calculated in question 1a above? Please explain why without using calculations? c. Confirm your answer to question 1a above by preparing a contribution margin income statement. d. Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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