Reference no: EM131806439

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.