What is t he companys break even point

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Reference no: EM131173609

Sales (30,000 u nits @ $3) Variable costs:		$90,000
Man ufact uring	$20,000
Selling and administrative	7,000
Fixed costs:
Man ufact uring	21,000
Selling and administrative	12,000	60,000

Answer each part below independently of all other parts.

(a) What is t he company's break-even point in units and in dollars?

(b)The company proposes to buy equipment to replace workers. If this is done, fi increase $3,280 and variable costs will decrease $3,000 when sales are $90,000 new break-even point in units?

(c) Assume that fixed costs are increased by $2,000 and variable costs by $1,500 a sales level. How much must sales (in units) be increased to make the same $ How much must sales (in units) be increased to yield a before-tax net income of sales?

Reference no: EM131173609

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