Answer:
1.Operating Income (loss) (2122)
2. Break even point in units = 28126
3. Required Sales in Units=30899
Explanation:
Khaling Company
Income Statement
Sales (26,850units* $ 15.84) $ 425304
Less
Variable Costs ( $11.70* 26580 units) $ 31,0986
Contribution Margin 114,318
Less Fixed Costs $116,440
Operating Income (loss) (2122)
2. Break even point in units = Fixed Costs/ Contribution Margin Per unit
= $116,440/$ 15.84-$11.70
=$116,440/ 4.14
= 28,125.6= 28126 units
<em>We find the Contribution Margin Per unit by subtracting variable cost per unit from sales price per unit.</em>
3. Required Sales in Units = Fixed Costs + Targeted Income/ Contribution Margin Per unit
=$116,440 +$11,480 /$ 15.84-$11.70
= 127920/4.14= 30898.5= 30899 units
