Concept explainers
West Island distributes a single product. The company’s sales and expenses for the month of June are shown.
Using the information presented, answer these questions:
A. What is the break-even point in units sold and dollar sales?
B. What is the total contribution margin at the break-even point?
C. If West Island wants to earn a profit of $21,000, how many units would they have to sell?
D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
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