Queen Ltd. sells mattresses and has a monthly sales capacity of $120,000. The income statement for...

Queen Ltd. sells mattresses and has a monthly sales capacity of $120,000. The income statement for the current month is:

Sales 80 000

Cost of Goods Sold 36 000

Gross Profit 44 000
Operating Expenses 16 000

Net Income 28 000

QUESTIONS:

1. What is the total contribution for the current month?

2. What would be total contribution at breakeven for one month?

3. What % of capacity is needed to breakeven?

4. What is the break even point for one year?

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Expert Solution

jeff jeffy answered 1 year ago

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