APPLY THE CONCEPTS: BreakEven Point in Units The break-even point can he expressed in terms of sales dollars or number of units. The hreakreven urits tells us how many units must be sold so that operating income is $0. Assume that you are part of the accounting team for Strunk Manufacturing. The company currently expects to sell 650 units for total revenue of 520,250 each month. Strunk Manufacturing estimates direct materials costs of $3,150, direct labor costs of $4.20!], variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $6,750 are aiso expected, which inciudes xed overhead and seliing and administrative costs. Using this information, compiete the contribution margin income statement shown below. Strunk Manufacturing Contrib ion Margin Income Statement Less: Variahie costs v v' ) Contribution margirv 4 Less: Fixed costs v J 10 500 X Operating income Feedback Y Check My Work Review the formula and structure of this statement from metirst two steps above. and apply these values Recail that direct labor and direct materiais are inciuded With variabie costs. Strunk Manufacturing is examining cost behavior patterns. Your recommendation is to first determine the breakeeven point in units. First, calculate the contrithian margin (CM.- per unit (rounded to the nearest doliar). X Next, complete the formula below to determine the breakeeven units. Total Fixed Costs 1' Contribution Margin per Unit : Units $:1r SE = x Feedback