Rudy Co has total fixed costs of $520,000 A unit of product sells for $15 and variable costs per unit are $11 a) Prepare a contribution margin income statement showing predicted net income (loss) if Rudy Co, sells 100,000 units for the year ended December 31 b) At a minimum, how many units must Rud...

a b 520000 15 11 130000 units Rudy Company ...

Rudy Co. has total fixed costs of $520,000. A unit of product sells for $15 and variable

Question:

Rudy Co. has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11
a) Prepare a income statement showing predicted net income (loss) if Rudy Co, sells 100,000 units for the year ended December 31.
b) At a minimum, how many units must Rudy Co; sell in order not to incur a loss?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...