The Walters Company has the following information related to Product T: Sales $86,100,000 Cost of Goods...

The Walters Company has the following information related to Product T:

Sales		$86,100,000
Cost of Goods Sold		64,900,000
Gross Profit		$21,200,000
General, Selling & Administrative		18,000,000
Income from Operations		$3,200,000

Assume the Cost of Goods Sold is 25% fixed.
Assume the General, Selling, and Administrative is 85% fixed.

What is the total Contribution Margin and what is the Contribution Margin Ratio?

If Sales increase by $100,000, what will be the increase in Income from Operations? If the information above is for 1,000 units, what is the Breakeven Point in Units?

Expert Solution

ekkarill92 answered 2 years ago

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