For FY 2016 Bravo Company’s CVP format Income Statement is as follows:

Bravo Company

Income Statement (CVP format)

For the Year Ended 12/31/16

Sales (100 units)

$10,000

Variable Costs:

    Direct Labor

$1,500

    Direct Materials

1,400

    Factory Overhead (variable)

1,000

    Selling Expenses (variable)

600

    Administrative Expenses (variable)

500

Total Variable Expenses

5,000

Contribution Margin

$5,000

Fixed Costs:

    Factory Overhead (fixed)

$500

    Selling Expenses (fixed)

1,000

    Administrative Expenses (fixed)

1,000

Total Fixed Expenses

2,500

Net Income (aka Operating Income)

$2,500

                    Bravo utilizes a JIT production system and there are no Raw Materials, Work-in-Process or Finished Goods inventories. Bravo Company expects that all costs will remain the same for FY 2017 with the exception of fixed factory overhead which is budgeted to increase by $1,700. Use this information to determine:

1. FY 2016 Cost of Goods Sold

2. FY 2016 breakeven point in units