Giere manufacturing had a bad year in 2011 for the first

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Giere Manufacturing had a bad year in 2011. For the first time in its history it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product: Net sales $1,600,000; total costs and expenses $1,740,000; and net loss $140,000. Costs and expenses consisted of the following.

  • Total Variable Fixed
  • Cost of goods sold $1,200,000 $780,000 $420,000
  • Selling expenses 420,000 75,000 345,000
  • Administrative expenses 120,000 45,000 75,000


$1,740,000 $900,000 $840,000

Management is considering the following independent alternatives for 2012.Compute the break-even point in dollars under each of the alternative courses of action. (Round answers to 0 decimal places, e.g. 125. For computational of unit costs and contribution margin ratios, round to 4 decimal places, e.g. 10.2520. Round all other computations to 0 decimal places, e.g. 125.

Reference no: EM13604055

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