Net income and breakeven point calculation
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What should a company expect their net income to be if their units sold increases by 10,000 units given the following information? What would their breakeven sales point be?
Sold 60,000 units this year.
Sales $120,000
Direct Labor 6,000
Indirect Labor 18,000
Fixed Manufacturing Over head 50,000
Variable Selling Expenses 6,000
Fixed Administrative Expenses 10,000
Net Income $30,000
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Solution Summary
The solution calculates the breakeven sales point.
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Fixed costs
Indirect Labor 18,000
Fixed Manufacturing Over head 50,000
Fixed Administrative Expenses 10,000
Total Fixed costs 78000
Selling price per unit = ...
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