Question: Income Statement, Break-Even Units, Units to Earn Target Income Melford Company sold 26,800 units last year at $16.00 each. Variable cost was $11.50, and total fixed cost was $126,000.
Required: 1. Prepare an income statement for Melford for last year.
2. Calculate the break-even point in units.
3. Calculate the units that Melford must sell to earn operating income of $12,150 next year.