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Sales (30,000 u nits @ $3)
Variable costs:
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$90,000
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Man ufact uring
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$20,000
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Selling and administrative
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7,000
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|
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Fixed costs:
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Man ufact uring
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21,000
|
|
|
Selling and administrative
|
12,000
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60,000
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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?