Khaling Company sold 26,850 units last year at $15.80 each. Variable cost was $11.70, and total fixed cost was $116,440.

	Required:
1.	Prepare an income statement for Khaling for last year.
2.	Calculate the break-even point in units.
3.	Calculate the units that Khaling must sell to earn operating income of $11,480 this year.

Refer to the list below for the exact wording of text items within your income statement.

Amount Descriptions
Operating income
Operating loss
Sales
Total contribution margin
Fixed cost
Variable cost