Custom Furniture Company Contribution Income Statement For the Month of June Total Per Unit Sales (500...

Transcribed Image Text:

Custom Furniture Company Contribution Income Statement For the Month of June Total Per Unit Sales (500 chairs) $ 250,000 $ 500 Less: Variable expenses 150,000 300 Contribution margin 100,000 $ 200 Less: Fixed expenses 80,000 Net operating income $ 20,000 1. What is net operating income if the company only sells 1 chair? 2. What is net operating income if the company sells 2 chairs? 3. How many chairs do we have to sell to pay for all of our fixed expenses? (Hint, this is another way of asking how many units we need to sell to break-even.) Custom Furniture Company Contribution Income Statement For the Month of June Total Per Unit Sales (500 chairs) $ 250,000 $ 500 Less: Variable expenses 150,000 300 Contribution margin 100,000 $ 200 Less: Fixed expenses 80,000 Net operating income $ 20,000 1. What is net operating income if the company only sells 1 chair? 2. What is net operating income if the company sells 2 chairs? 3. How many chairs do we have to sell to pay for all of our fixed expenses? (Hint, this is another way of asking how many units we need to sell to break-even.)

Answer rating: 100% (QA)

Answer Custom Furniture Company BreakEven Analysis We can use the provided contribution income statement to answer your questions about net operating ... View the full answer