Income Statement, Break-Even Units, Units to Earn Target Income Melford Company sold 26,800 units last year at $16.00 each. Variable cost was $11.50, and total fixed cost was $126,000. Required: 1. Prepare an income statement for Melford for last year. 2. Calculate the break-even point in units. 3. Calculate the units that Melford must sell to earn operating income of $12,150 next year.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
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Income Statement, Break-Even Units, Units to Earn Target Income Melford Company sold 26,800 units last year at $16.00 each. Variable cost was $11.50, and total fixed cost was $126,000.

Required:

1. Prepare an income statement for Melford for last year.

2. Calculate the break-even point in units.

3. Calculate the units that Melford must sell to earn operating income of $12,150 next year.

 

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