Calculate the companys break-even point in units

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Reference no: EM13823328

The B company had the following functional income statement for the month of May 2011.

   Functional Income Statement

Sales (15,000 units) $300,000

COGS

Direct materials $60,000

Direct labor $45,000

Variable Manufacturing overhead $37,500

Fixed factory overhead $50,000 $192,5000

Gross Profit    $107,500

Selling & Admin. expenses

variable $7,500

fixed $20,000 $27,500

Net Income $80,000

A. Calculate the company's break-even point in units

B. Calculate the company's break-even point in sales volume

C. If the company wants to have a target profit of $10,000, re-calculate the break-even point in units

Reference no: EM13823328

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