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Requirement: 1 Sales Variable expenses Contribution margin Fixed expenses Net operating income Flight Dynamic Amount % 750000 100.00% 270000 36.00% 480000 64.00% Sure shot Amount % 250000 100.00% 62500 25.00% 187500 75.00% Total Company Amount % 1000000 100.00% 332500 33.25% 667500 66.75% 597500 70000
Requirement: 2 Fixed expenses 597500 Dollar sales to break even Overall CM Ratio 66.75% = | Break even point (Dollars) 895131 Requirement: 3 Increase sales 56000 CM Ratio 66.75% = Operating income to increase 37380
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