BBUS 2541 Study Guide - Income Statement, Contribution Margin, Net Income
Document Summary
,000,000 level) sales contributi on margin income net. Percentage increase net in income increase percentage sales revenue in operating leverage factor. Most operating managers prefer the contribution income statement for answering this type of question. The contribution format highlights the contribution margin and separates fixed and variable expenses. (cid:247) (cid:247) (cid:246) (cid:231) (cid:231) (cid:230) (cid:247) (cid:247) (cid:246) (cid:231) (cid:231) (cid:230) Break even point (in units) fixed costs on margin contributi unit. Number of sales units required to earn target net profit profit net margin costs target fixed unit contributi on. New break point even units) (in new fixed costs contributi on unit new. . 00 = . 00 . 00 increase in the unit cost of the new part. Number of sales units required to earn target net profit, given manufacturing changes profit net margin target new costs fixed new unit contributi on. *last year"s profit: ()(25,000) ,050,000 = ,000.
