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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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