Break$-$Even Point in Units

factory overhead and fixed selling and administrative expense$).$

Required:

Calculate the sales revenue that Chillmax must make to break even by using the break$-$even point in sales equation. $

Prepare a contribution margin income statement based on the break$-$even point in sales dollars. Enter all amount as a positive number.

Chillmax Company

Contribution Margin Income Statement

At Break$-$Even Point

Total

Sales

q

Total variable cost

Total contribution margin $

Total fixed cost

Operating incomeUnits to Earn Target Income

cost equals $$78,000($includes fixed factory overhead and fixed selling and administrative expense$).$

Required:

Calculate the number of pairs of shoes Chillmax must sell to earn operating income of $$81,900.$

$

Check your answer by preparing a contribution margin income statement based on the number of units calculated. Enter amounts as positive numbers.

Chillmax Company

Contribution Margin Income Statement

At Target Pairs of Shoes Sold