Acc505 (TCO B) Imperial Company’s income statement for the most recent year

(TCO B) Imperial Company’s income statement for the most recent year appears below.

Sales (45,000 units)                                          $1,350,000

Less: variable expenses                                       750,000

Contribution margin                                                600,000

Less: fixed expenses                                           375,000

Net operating income                                          $225,000

Required:

  1. Calculate the unit contribution margin.
  2. Calculate the break-even point in dollars.
  3. If the company desires a net operating income of $290,000, how many units must it sell?

 

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