Solved: Distributor sell in a given year to break-even, Accounting Basics

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Distributor sell in a given year to break-even

Question: Consider the following information for a big-screen television distributor:

Sales price per TV        $1,500
Variable costs per TV        $1,100
Fixed costs per year        $120,000
Depreciation per year          $20,000
Tax rate       35%

How many units must the distributor sell in a given year to break-even (in terms of accounting profit)?

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Accounting Basics: Distributor sell in a given year to break-even

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Accounting Basics: Distributor sell in a given year to break-even

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