Question - Del-Ware Gap Company: Income Statement (for the Year Ended December 31, 2008)
Sales (20,000 units): $500,000
Variable expenses: $300,000
Contribution margin: $200,000
Fixed expenses: $120,000
Net income: $80,000
What is the company's break-even point in units?
How many more units would the company have had to sell to earn net income of $100,000 in 2008?
If the company expects a 25% increase in sales volume in 2009, what would be the expected net income in 2009?
How much sales dollars would the company have to generate in order to earn a target net income of $150,000 in 2009?