Required information
The following information applies to the questions displayed below.
Solomon Company makes and sells products with variable costs of $ each. Solomon incurs annual fixed costs of
$ The current sales price is $
Note: The requirements of this question are interdependent. For example, the $ desired profit introduced in
Requirement also applies to subsequent requirements. Likewise, the $ sales price introduced in Requirement
applies to the subsequent requirements.
Required
f If variable cost rises to $ per unit and fixed costs are $ what level of sales is required to earn the desired profit? Express
your answer in units and dollars. Prepare an income statement using the contribution margin format.
Complete this question by entering your answers in the tabs below.
Req F
Req F
If variable cost rises to $ per unit and fixed costs are $ prepare an income statement using the contribution
margin format.
SOLOMON COMPANY
Income Statement
