Jen & Berry’s currently sells 100,000 pints of ice cream per month according to the following income statement:
Total $ Per Unit $
SALES $300,000 $ 3.00
VARIABLE COSTS 200,000 $ 2.00
CONTRIBUTION MARGIN $ 100,000 $ 1.00
FIXED COSTS 50,000
NET INCOME $ 50,000
How many pints must be sold in a month to earn a Net Income of $100,000 ?
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75,000 pints
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150,000 pints
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200,000 pints
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none of the above are the correct number of pints that must be sold to earn $100,000 of Net Income.
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