(Solution) - The 2012 pro forma income statement for Grover Company is as -(2025 Original AI-Free Solution)

Paper Details

The 2012 pro-forma income statement for Grover Company is as follows (ignore taxes):

Required:
1. Compute how many units must be sold to break even.
2. Compute the increase (decrease) in profit under the following independent situations:
a. Sales increase 25%.
b. Fixed selling and administrative expenses decrease 5%.
c. Contribution margin decreases 20%.
3. Compute sales in units and dollars at the break-even point if fixed costs increase from
$79,000 to $85,000.
4. Compute the number of units that must be sold if expected profit is $1million.