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    Breakeven Point

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    Please help with the following problem. Provide step by step calculations.

    Barnes Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro formula income statement for the current year is presented below:

    Sales $1,500,000
    Cost of sales:
    Direct materials 250,000
    Direct labor 150,000
    Direct labor 75,000
    Variable overhead 100,000 575,000
    Gross profit
    Selling and G&A
    Variable 200,000
    Fixed 250,000 450,000
    Operating income 475,000

    What is the breakeven point for the Barnes Corporation for the current year?

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    https://brainmass.com/business/finance/computing-breakeven-point-297744

    Solution Preview

    With what the information you have given. The answer below is correct.

    I understand as no info is provided on selling price and no. of units. The below calculation will give you ...

    Solution Summary

    The solution computes breakeven points for Barnes Corporation based in Income statement information. Step by step calculations are given for each.

    $2.49

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