Make a cvp income statement based on the management

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Reference no: EM132717306

The Tanoor company produces tip teir high rise flour. They sell it for $6.25/kg. The management estimates the following revenue and costs for year 2018

Sales$ 25,000,000

Direct Materials $ 1.50 per unit

Direct Labor$0.98 per unit

Variable OH $0.85 per unit

Fixed OH$2,800,000

Variable Selling Expenses $0.35 per unit

Fixed Selling Expenses$5,500,000

Variable Administrative Expenses $ 0.15 per unit

Fixed Administrative Expenses $350,000

Instructions:

Problem a) Prepare a CVP income statement for 2018 based on the management estimate.

Problem b) Compute the company's break-even point in units in 2018?

Reference no: EM132717306

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