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    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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    https://brainmass.com/business/accounting/net-income-breakeven-point-calculation-139725

    Solution Preview

    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 = ...

    Solution Summary

    The solution calculates the breakeven sales point.

    $2.19

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