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The following is the calculation of Break even point in units and
Break even point in Dollars:
Calculation of Break Even Sales | |
Contribution Ratio (400000/1600000)*100 | 25.00% |
Fixed Cost | 456400 |
Break even point in dollar sales (a) | 1825600 |
(Fixed Cost / Contribution Ratio) | |
Selling Price Per Unit (1600000/100000) (b) | 16 |
Break even point in Units ( a / b ) | 114100 |
Problem 5-6A (Video) (Part Level Submission) Sunland Corporation has collected the following information after its first...
Problem 5-6A (Video) (Part Level Submission) Sunland Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $200,000 (40% variable and 60% fixed), direct materials $508,000, direct labor $290,400, administrative expenses $278,000 (20% variable and 80% fixed), and manufacturing overhead $380,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that...
Problem 5-6A (Video) (Part Level Submission) Sunland Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $200,000 (40% variable and 60% fixed), direct materials $508,000, direct labor $290,400, administrative expenses $278,000 (20% variable and 80% fixed), and manufacturing overhead $380,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that...
Problem 5-6A (Video) (Part Level Submission) Sunland Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $200,000 (40% variable and 60% fixed), direct materials $508,000, direct labor $290,400, administrative expenses $278,000 (20% variable and 80% fixed), and manufacturing overhead $380,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that...
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