Solution-Calculate Jacob breakeven point in units and sales

Calculate Jacob breakeven point in units and sales dollars

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Reference no: EM133104932

Question - Jacob Garzon operates a photography business that takes photographs of teams and players for various youth sports leagues and tournaments. His income statement for March, when he sold 4,000 photographs, is as follows:

Sales revenue		$80,000	$20.00
Less variable expenses
Cost of goods sold	20,000		5.00
Salaries and wages expense	8,000		2.00
Postage expense	4,000		1.00
Total variable expenses		32,000	8.00
contribution margin		48,000	$12.00
Less fixed expenses
Cost of goods sold	4,600
Advertising	600
Salaries and wages expense	10,000
Insurance expense	1,500
Depreciation expense	1,300
Total fixed expenses		18,000
Operating income		$30,000

Required - Calculate Jacob's breakeven point in units and sales dollars.

Reference no: EM133104932

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Calculate Jacob breakeven point in units and sales dollars

Reference no: EM133104932

Reference no: EM133104932

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