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Category > Accounting Posted 30 Jul 2017 My Price 7.00

company's break-even point

Sales (30,000 u nits @ $3)

Variable costs:

  

$90,000

Man ufact uring

$20,000

  

Selling and administrative

7,000

  

Fixed costs:

    

Man ufact uring

21,000

  

Selling and administrative

12,000

60,000

$30,000

 

Answer each part below independently of all other parts.

(a) What is t he company's break-even point in units and in dollars?

(b)The company proposes to buy equipment to replace workers. If this is done, fi increase $3,280 and variable costs will decrease $3,000 when sales are $90,000 new break-even point in units?

(c) Assume that fixed costs are increased by $2,000 and variable costs by $1,500 a sales level. How much must sales (in units) be increased to make the same $ How much must sales (in units) be increased to yield a before-tax net income of sales?

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Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 08:07 PM My Price 7.00

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