Page Marker Inc. distributes a singleproduct. The company’s sales and expenses for the last month is asfollow:
Total
RM
Per Unit
RM
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
450,000
180,000
270,000
216,000
54,000
30
12
18
a. What isthe monthly break-even point in units and in sales value?
b. How manyunits would have to be sold each month to earn a target profit ofRM90,000?
c. If sales increase by RM50,000 per month and there is no change infixed expenses, by how much would you expect monthly net operatingincome to increase? Hint: use CM ratio.
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