Req. 1 Sales revenue - Variable costs - Fixed costs =Operating income ($12 X Units Sold - $4.80 X Units Sold) - $583,200 =0 so (Selling price - Variable Cost) x Units = $583,200 Sales Rev Variable Cost Fixed costs MINUS _x No. of flags = $ 583,200 Solve for Number of flags to break even = Contribution margin = Target number of flags for net income of $33,000 Target number of flags in dollars ON Kincaid Company Contribution Margin Income Statement Year Ended December 31, 2012 Variable costs: Operating costs [72,000 X ($4.80 X.30)] Contribution margin Fixed costs Operating loss 583,200 Si (583,200) 62 Reg. 4 P17-25AP19-24A Scroll Lock Ready Type here to search = 4x aut Ib Copy Format Painter Clipboard 5 - X Calibri 11 -A A BIUU - a. A. Font Wrap Text Merge & Center Alignment Kincaid Company Contribution Margin Income Statement Year Ended December 31, 2012 Variable costs: Operating costs [72,000 X ($4.80 X.30)] Contribution margin Fixed costs Operating loss 583.200 $ (583,200) Reg. 4 New fixed costs = New variable costs = Sales revenue - Variable costs - Fixed costs = Operating income Sales Rev New Variable Cost New Fixed costs S 12 MINUS $ - * No. of flags = $ . Solve for Number of flags to break even = flags Breakeven sales in dollars = 77 P17-254 P19-24A Scroll Lock Type here to search o e L