(SOLVED)- Melford Company sold 26 800 units last year at 16 00 each

Question Description:


Melford Company sold 26,800 units last year at $16.00 each. Variable cost was $11.50, and total fixed cost was $126,000.

1. Prepare an income statement for Melford for last year.
2. Calculate the break-even point in units.
3. Calculate the units that Melford must sell to earn operating income of $12,150 next year.