What is number for operating cost ?

APPLY THE CONCEPTS: Break-Even Point in Units The break-even point can be expressed in terms of sales dollars or number of units. The break-even units tells us how many units must be sold so that operating income is $0. Assume that you are part of the accounting team for Gordon Computing. The company currently expects to sell 964 units for total revenue of $21,100 each month. Gordon Computing estimates direct materials costs of $3,150, direct labor costs $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $6,600 are also expected, which includes fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below. Gordon Computing Contribution Margin Income Statement Sales 21.100 Less: Variable costs 10,500 Contribution margin 10,600 Less: Fixed costs 6,600 Operating income 17,950 X Feedback Check My Work Review the formula and structure of this statement from the first two steps above, and apply these values. Recall that direct labor and direct materials are included with variable costs. Next Submit Assignment for Grading Email Instructor Save and Exit