Question

A. Sales need to increase to $8,500, or by $3,500, to reach break-even. B. Sales need...

A.

Sales need to increase to $8,500, or by $3,500, to reach break-even.

B.

Sales need to increase to $21,429, or by $15,730, to reach break-even.

C.

Sales need to increase to $16,625, or by $10,925, to reach break-even.

D.

Sales need to increase to $11,659, or by $5,659, to reach break-even.

E.

Sales need to increase to $8,000, or by $2,300, to reach break-even.

QUESTION 5

You are part of a new product team and are being asked to determine how much of anincrease in sales will be needed before the product will be profitable. Price changes are not allowed. Ignore taxes.

You have the following information:

Current Sales     $5,700

Cost of Goods    $4,500 (Includes $1,000 of Depreciation)

SG&A                   $3,500

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