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Compute break-even point in dollars , contribution margin ratio, target net income sales
Mavericks Inc. produces widgets. The widgets are sold for $1.00 per unit to wholesalers. Unit variable cost are 35%.
For the year 2020, management estimates the following revenues and costs.
	Sales	$ 2,175,000
		% of sales
	Manufacturing overhead- variable	35%
	Manufacturing overhead -fixed	25%
	SGA expenses - variable	15%
	SGA expenses- fixed	15%
	Selling expenses - variable	10%
	Selling expenses - fixed	20%
Instructions:
(a)	Compute the contribution margin ratio. (Round to the nearest full percent.)
(b )	Compute the break-even point in dollars.
(c)	Determine the sales dollars required to earn net income of $350,000.
(d)	Provide a written Interpretation of the results

Contribution Margin Ratio

Unit Contribution Margin 0.65

Unit selling Price 1

Contribution Margin Ratio 65%

Break-even point in dollars

Fixed Cost 1,305,000

Contribution Margin Ratio 65%

Break-even point in dollars 2,007,692

Sales Dollars Required

Fixed Costs 1,305,000

Target Income 350,000

Total 1,655,000

Contribution Margin Ratio 65%

Sales dollars required 2,546,154

provide interpretation for the information provide in a few sentences .

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