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Question - Kibble Company had the following functional income statement for the month of July 2011:
Kibble Company Functional Income Statement For the Month Ending July 31, 2011
Sales ($40 x 25,000)
$1,000,000
Cost of goods sold:
Direct materials ($8 x 25,000)
$200,000
Direct labor ($6 x 25,000)
150,000
Variable factory overhead ($5.00 x 25,000)
125,000
Fixed factory overhead
180,000
- 655,000
Gross profit
$ 345,000
Selling and administrative expenses:
Variable ($1.00 x 25,000)
$25,000
Fixed
60,000
- 85,000
Net income
$ 260,000
Required - Calculate Kibble Company's break-even sales in units.
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