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 2016 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 2016 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 2016 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 2016 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