Determine unit sales volume required to earn a pretax profit

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Reference no: EM133138020

Question - High-Low Cost Estimation and Profit Planning - Comparative income statements for Bismark Products Inc. follow:

BISMARK PRODUCTS INC.
Comparative Income Statements
For Years Ending December 31


Year 1

Year 2

Unit sales

6,250

9,375

Sales revenue

$ 100,000

$ 150,000

Expenses

(85,000)

(105,000)

Profit (loss)

$ 15,000

$ 45,000

Note: Round UP answers to the nearest unit.

Required -

(a) Determine the break-even point in units.

(b) Determine the unit sales volume required to earn a pretax profit of $25,000.

Reference no: EM133138020

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