Reference no: EM132919750
The Sweet Corporation reported the following information for the year ended December 31, 2008.
Net Sales $ 151,350.00
Cost of production $ 105,000.00
Marketing and distribution $ 16,350.00
other expense $ 9,000.00
otal Expense $ 130,350.00
Operating Income $ 21,000.00
75% variable ,25% fixed
40% variable ,60% fixed
100% fixed
The company sold 10,000 pounds of sugar in 2019.
For 2020, the company expects other expenses to increase by 25% and unit sales to increase by 20%. The company also expects to sell all of the sugar that they produce. There will be no ending inventories of sugar. There are no other changes expected for 2020. All cost relationships are expected to remain the same.
Required:
Problem a. Compute the breakeven point in units for the year 2019.
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