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Khaling Company sold 27,150 units last year at $15.60 each. Variable cost was $11.40, and total fixed cost was $118,020. Requ

Khaling Company Score: 46/51 Contribution Margin Income Statement For the Last Year Sales $423.540.00 309,510.00 Variable cos

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Answer #1
Contribution Margin Income Statement
Sales Revenue        423,540
Less: Variable costs        309,510
Contribution Margin        114,030
Less: Fixed costs        118,020
Operating Income           (3,990)
Break even point in units = Fixed costs/(Selling price per unit - variable cost per unit)
=118,020/(15.60-11.40)
                          28,100 units
3.Required units = (Desired Income + Fixed costs)/(Selling price per unit - variable cost per unit)
=(10080+118020)/(15.60-11.40)
                          30,500 units
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