Deckyard Company distributes a lightweight lawn chair that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 annually.
What is the product's CM ratio?
Use the CM ratio to determine the break-even point in sales dollars.
The company estimates that sales will increase by $53,000 during the coming year due to increased demand. By how much should net operating income increase?
Assume that the operating results for last year were as follows:
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