Ivanhoe provides testing services to school districts that wish
to assess students’ reading and mathematical abilities. Last year
Crane evaluated 30,000 math tests and 10,000 reading tests. An
income statement for last year follows.
Math Testing
Reading Testing
Total
Per Unit
Total
Per Unit
Total
Company
Sales revenue
$960,000
$32
$480,000
$48
$1,440,000
Variable expenses
672,000
22.40
240,000
24
912,000
Contribution margin
$288,000
$9.60
$240,000
$24
528,000
Fixed expenses
360,000
Operating income
$168,000
(a)
What is Ivanhoes breakeven point in...