The Ornate Company produces a single product and has total costs ranging from $321,875 (at 20,000 units) to $966,875 (at 80,000 units). Sales volume in 2020 was 32,000, and operating income was $45,125. Ornate's product is highly specialized; therefore, no units are kept in inventory.
Required:
(a.) Determine the cost equation for Ornate's costs.
(b.) Prepare a contribution margin income statement for 2020 including separate columns for total dollars, per unit dollars, and percentages.
(c.) Determine the break-even point (in units and in dollars).

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The Answer of The Ornate Company produces a single product and has total costs ranging from $321,875 (at 20,000 units) to $966,875 (at 80,000 units). Sales volume in 2020 was 32,000, and operating income was $45,125. Ornate's product is highly specialized; therefore, no units are kept in inventory.
Required:
(a.) Determine the cost equation for Ornate's costs.
(b.) Prepare a contribution margin income statement for 2020 including separate columns for total dollars, per unit dollars, and percentages.
(c.) Determine the break-even point (in units and in dollars).

The Ornate Company Produces a Single Product and Has Total