Question 3 The income statement for Dexter Company for 20x6 appears below. DEXTER COMPANY Income Statement For the Year

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Question 3 The Income Statement For Dexter Company For 20x6 Appears Below Dexter Company Income Statement For The Year 1 (49.4 KiB) Viewed 33 times

Question 3 The income statement for Dexter Company for 20x6 appears below. DEXTER COMPANY Income Statement For the Year Ended December 31, 20x6 Sales (40,000 units). Variable expenses Contribution margin. Fixed expenses... Net income (loss)... $1,000,000 700,000 300,000 360,000 $ 60,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers: 1. What was the company's break-even point in sales dollars in 2006? 2. How many additional units would the company have had to sell in 2007 in order to earn net income of $60,000? 3. If the company is able to reduce variable costs by $2.50 per unit in 2007 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $50,000?