Question - Drake Company's income statement for the most recent year appears below:
Sales (26,000 units) $650,000
Less: Variable expenses 442,000
Contribution margin 208,000
Less: Fixed expenses 234,000
Net operating loss $(26,000)
Required:
a. Calculate the unit contribution margin.
b. Calculate the break-even point in dollars.
c. If the company desires a net operating income of $20,000, how many units must it sell?