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What will be the break-even-point in sales dollars

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Reference no: EM132792850

Assume that TALA management was provided by the following information regarding the production and sales of Bluetooth Keyboards for tablet computer:

Cost Schedule Variable

Cost Direct labor per keyboard $8.0

Direct materials $4.0

Variable overhead $3.0

Fixed costs Manufacturing $ 25 000

Selling 40 000

Administrative 70 000

Selling price per keyboard $25.0

Sales, 2020 (20 000 Keyboards) $500 000

Assume that management set the sales target for the year 2018 at level $550 000 (22000 keyboards). Amazon's management believes that to attain the sales target in 2018, the company must incur an additional selling expenses of $10 000 for advertising in 2018, with over cost remaining constant.

problem 1: What will be the break-even-point in sales dollars for 2018 if the company spends the additional $ 10 000?

Reference no: EM132792850

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