Answered: Sales (1,000 units) Variable expenses…

Business

Accounting

Sales (1,000 units) Variable expenses Contribution margin Fixed expenses $ 50,000 32,500 17,500 12,250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Graham Corporation has provided the following contribution format
income statement. Assume that the following information is within the
relevant range.
Sales (1,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
O 0 units
O 895 units
The break-even point in unit sales is closest to: (Round your
intermediate calculations to 2 decimal places.)
700 units
$ 50,000
O 650 units
32,500
17,500
12,250
$ 5,250

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