(TCO B) Drake Company's income statement for the most recent year appears below. Sales (45,000...
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Accounting
(TCO B) Drake 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?
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