Mariah Corporation has provided the following contribution format income statement. Assume any solution is within the relevant range.

	Sales (3,000 units)	$150,000
	Variable expenses	90,000
	Contribution margin	60,000
	Fixed expenses	48,000
	Net operating income	$12,000

Required:

How much is the contribution margin per unit? Estimate how many units must be sold to achieve a target profit of $54,000.

At the target profit of $54,000, what is the margin of safety in dollars?

If the tax rate is 25%, how many units must be sold to achieve a target profit of $75,000?

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Expert Solution

ekkarill92 answered 1 year ago

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