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The Ornate Company produces a single product and has totai costs ranging from $321,875 (at 20,000 uni 966,875 (at 80,000 units). Sales volume in 2016
The Ornate Company produces a single product and has totai costs ranging from $321,875 (at 20,000 uni 966,875 (at 80,000 units). Sales volume in 2016 was 32,000, and operating income was $45,125. Ornate product is highly specialized; therefore, no units are kept in inventory Reqnired (a.) Determine the cost equation for Ornate's costs using the high/low method. Prepare a contribution margin income statement for 2016 including separate columns for totai and per unit dollars. (b.) (c.) Determine the break-even point (in units and in dollars)
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