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