Chapter 16, Problem 11E

1.

To determine

Compute the break-even point in units.

2.

To determine

Compute the break-even point in units to achieve a profit of $95,900 and draw up the variable costing income statement.

3.

To determine

Compute the variable cost for the break-even units of 12,000.

4.

To determine

Compute the current contribution margin, operating leverage, percentage change in operating income if the sales increase and the new operating income for the next year