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Rudy Co. has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per
unit are $11.
a) Prepare a contribution margin income statement showing predicted net income (loss) if Rudy
Co. sells 100,000 units for the year ended December 31.
b) At a minimum, how many units must Rudy Co. sell in order not to incur a loss?
Solution

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Rudy Co. has total fixed costs of $520,000. A unit of product sells .pdf

  • 1. Rudy Co. has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a) Prepare a contribution margin income statement showing predicted net income (loss) if Rudy Co. sells 100,000 units for the year ended December 31. b) At a minimum, how many units must Rudy Co. sell in order not to incur a loss? Solution