CLO 2(c) Ruben Corporation - Breakeven point,
Not what you're looking for?
Corresponds to CLO 2(c) Ruben Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was $5,040. Ruben's expectations for the coming year include the following:
- The sales price of the T-shirts will be $9
- Variable costs to manufacture will increase by one-third
- Fixed costs will increase by 10%
- The income tax rate of 40% will be unchanged
The number of T-shirts Ruben Corporation must sell to break even in the coming year is:
a) 17,500
b) 19,250
c) 20,000
d) 22,000
Purchase this Solution
Solution Summary
The solution computes breakeven point for Ruben Corporation.
Solution Preview
At breakeven point Total Sales = Variable Cost + Fixed Cost.
Then,
Fixed Cost = ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Motivation
This tests some key elements of major motivation theories.