ABC Company wants to know its break-even point. Use the following information: Sales $1,500,000 Direct Materials...
ABC Company wants to know its break-even point. Use the following information:
Sales $1,500,000
Direct Materials $300,000
Direct Labor $400,000
Manufacturing Overhead $500,000
Selling Expenses $200,000
Administrative Expenses $150,000
Selling expenses are 70% variable and 30% fixed, manufacturing overhead are 40% variable and 60% fixed, administrative expenses are 40% variable and 60 % fixed. Current production in units are 100,000.
1. Compute the break-even point in: (a) Dollars. (b) in units.
2. If variable cost increases by 25%, what is the new break-even point in (a) units? (b) dollars?
3. If fixed cost increase by $50,000, what is the new break-even point in (a) units and (b) in dollars?
• All questions are independent from each other.
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ABC Company wants to know its break-even point. Use the
following information:
Sales $1,500,000
Direct Materials...
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