Rodger s Steel Parts produces parts for the automobile industry. The company has monthly fixed…
Rodger s Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $660,000 and a contribution margin of 75% of revenues. Requirements 1. Compute Rodger s Steel Parts monthly breakeven sales in dollars. 2. Project operating income (or loss) if revenues are $560,000 and if they are $1,030,000. 3. Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain.