Legal Beagals Inc. is a legal services firm that files incorporation papers for small businesses. They charge $1,000 per application. This year's income statement shows the following:
Sales $1,440,000
Variable Expenses $1,008,000
Contribution margin $432,000
Fixed costs $250,000
Profit $182,000.
Required:
(a) Compute the break-even point in units.
(b) Compute the contribution margin ratio.
(c) Compute the current margin of safety.
(d) How many applications must the company sell to make a profit of $350,000?
Click here for the solution: Legal Beagals Inc. is a legal services firm that files incorporation papers for small businesses
Showing posts with label Legal Beagals Inc. Show all posts
Showing posts with label Legal Beagals Inc. Show all posts
Saturday, July 25, 2015
Subscribe to:
Posts (Atom)