Reference no: EM131752207

Bowie Company had sales of $9,000 (100 units at $90 per). Manufacturing costs consisted of direct labor $1,400, direct materials $1,200, variable factory overhead $1,100, and fixed factory overhead $600. Selling expenses totaled $1,600 ($600 variable and $1,000 fixed), and administrative expenses totaled $1,400 ($400 variable and $1,000 fixed). Operating income was $1,700. Round all final answers to nearest dollar or whole number.

a. What is the break-even point in sales dollars and in units if the fixed factory overhead increased by $1,700?

b. What is the break-even point in sales dollars and in units if costs remain as originally projected?

c. What would be the operating income if sales units increased by 25%?