Solution-Prepare an income statement using the CM format

Prepare an income statement using the CM format

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Reference no: EM133031717

Problem - Trevor Manufacturing produces office furniture for high end office facilities. The current selling price of the chair is $780, variable costs including materials and labor are $220 per chair and fixed annual costs for the manufacturing facility are $225,000.

Required -

a. Calculate the BE point in units.

b. Calculate the units sold to earn a $150,000 profit. Prepare an income statement using the CM format based on that level of volume.

c. Determine the margin of safety in units.

Reference no: EM133031717

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Prepare an income statement using the CM format

Reference no: EM133031717

Reference no: EM133031717

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