Melford Company sold 27,050 units last year at $16.10 each. Variable cost was $11.40, and total fixed cost was $130,660.

Melford Company sold 27,050 units last year at $16.10 each. Variable cost was $11.40, and total fixed cost was $130,660.

Required:

1.

Prepare an income statement for Melford for last year.

2.

Calculate the break-even point in units.

3.

Calculate the units that Melford must sell to earn operating income of $12,220 this year.

1. Prepare an income statement for Melford for last year. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. If a net loss is incurred, enter that amount as a negative number using a minus sign.

Melford Company

Contribution Margin Income Statement

For the Last Year

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