Reference no: EM132632611
Problem 1: Determine how much units must be sold for a company that has selling price of $29, Variable cost per unit $ 12 and Fixed cost of $8000 to reach net income of $4000. Also calculate break even point
Sales $ 229,000
Purchases of raw materials 35,000
Indirect Labor 10,000
Direct Labor 24,000
Maintenance, factory Equipment 3,000
Advertising Expense 30,000
Insurance, factory equipment 800
Salaries (of Factory workers) 35,000
Office supplies 200
Rent(Factory uses 55%, Administrative and sales use the rest) 10,000
Factory Cleaning Supplies 4,200
Purchase of Factory Machine 18000
Depreciation(30% for office furniture & rest for office equipment) 3,000
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