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Solomon Company makes and sells products with variable costs of $24 each. Solomon incurs annual fixed costs of $478,800. The current sales price is

 

Solomon Company makes and sells products with variable costs of $24 each. Solomon incurs annual fixed costs of $478,800. The current sales price is $87. Note: The requirements of this question are Interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. Required b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. Answer is not complete. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Prepare an income statement using the contribution margin format. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. SOLOMON COMPANY Income Statement Sales Variable cost Contribution margin Fixed cost Net income (loss) < Req B1 Req B2 >

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