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Nutri-Tress Company produces shampoo in individual-use bottle for hotels. Each bottle sells for $0.36. The variable costs for each bottle (materials, labor, and overhead) total $0.27. The total fixed costs are $58,500. During 2008, 830,000 bottles were sold.
1. What is the break-even point in sales dollars?
2. How many units must be sold for Nutri-Tress to earn a profit (operating income) of $36,000 before taxes?
Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2011 income taxes. What is Case net income?
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