What was the company break-even point in units

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Reference no: EM131765285

Question: Kohler Company developed the following information for the product it sells:

Sales price $50 per unit

Variable cost of goods sold $28 per unit

Fixed cost of goods sold $650,000

Variable selling expense 10% of sales price

Variable administrative expense $2.00 per unit

Fixed selling expense $400,000

Fixed administrative expense $300,000

For the year ended December 31, 2016, Kohler produced and sold 100,000 units of product.

(a) Prepare a CVP income statement using the contribution margin format for Kohler Co. for 2016.

(b) What was the company's break-even point in units in 2016? Use the contribution margin technique.

Reference no: EM131765285

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