The Income Statement for Nyland Company for 2010 Appears Below

question 30

Essay

The income statement for Nyland Company for 2010 appears below.
Instructions
Answer the following independent questions and show computations using the contribution margin technique to support your answers:
1. What was the company's break-even point in sales dollars in 2010?
2. How many additional units would the company have had to sell in 2011 in order to earn net income of $30,000?
3. If the company is able to reduce variable costs by $2.50 per unit in 2011 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $35,000?

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Definitions:

Heartbeat

The rhythmic contraction and expansion of the heart, especially as felt through the walls of arteries.

Hypertension

A condition characterized by consistently high blood pressure.

Blood Pressure

The force that circulating blood exerts on the walls of blood vessels, critical for determining circulatory health.

Heart Attack

A medical emergency caused by the interruption of blood flow to the heart muscle, potentially leading to tissue damage or death.