Question
The income statement for Bradford Machine Company for 2021 appears below. BRADFORD MACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (40,000
The income statement for Bradford Machine Company for 2021 appears below. BRADFORD MACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (40,000 units) $1,000,000 Variable expenses 700,000 Contribution margin 300,000 Fixed expenses 360,000 Net income (loss) ($60,000) Answer the following independent questions and show computations using the contribution margin technique to support your answers: What was the company's break-even point in sales dollars in 2021? Break-even point in sales dollars $ How many additional units would the company have had to sell in 2022 in order to earn net income of $45,000? Additional units If the company is able to reduce variable costs by $2.50 per unit in 2022 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $45,000? Number of units sold units
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