Northlake Nordic Centre Inc.: price 30 per skier-day, variable cost 9 per skier-day, fixed costs $315,000 for the season. Evaluate operating income at three volumes (enter a loss as a negative number).

Answer

Operating income (loss) at 10,000 skier-days → -105000 · Operating income at 15,000 skier-days → 0 · Operating income at 20,000 skier-days → 105000

Cells - Operating income (loss) at 10,000 skier-days · ±0 - Operating income at 15,000 skier-days · ±0 - Operating income at 20,000 skier-days · ±0 Operating income = (30 − 9) × units − 315,000. At 10,000: 210,000 − 315,000 = **(105,000)**. At 15,000: 315,000 − 315,000 = **0** — break-even. At 20,000: 420,000 − 315,000 = **105,000**. Excel: `=21*B2-315000`.

Hermanson Vol 2 ch 21 (the chart, the equation and the CM statement as one fact); OpenStax Managerial Accounting §3.2 (concept map J1)