Question - Kibble Company had the following functional income statement for the month of July 2011:
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Kibble Company Functional Income Statement For the Month Ending July 31, 2011
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Sales ($40 x 25,000)
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$1,000,000
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Cost of goods sold:
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Direct materials ($8 x 25,000)
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$200,000
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Direct labor ($6 x 25,000)
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150,000
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Variable factory overhead ($5.00 x 25,000)
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125,000
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Fixed factory overhead
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180,000
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- 655,000
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Gross profit
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$ 345,000
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Selling and administrative expenses:
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Variable ($1.00 x 25,000)
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$25,000
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Fixed
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60,000
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- 85,000
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Net income
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$ 260,000
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Required - Calculate Kibble Company's break-even sales in units.