Feet-First Industries plans to sell 7,750 sleds at ($80) each in the coming year. Variable cost is
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Feet-First Industries plans to sell 7,750 sleds at \($80\) each in the coming year. Variable cost is 60 percent of the sales price. Fixed factory overhead equals \($49,540\) and fixed selling and administrative expense equals \($34,780\).
a. Calculate the units that Feet-First must sell in order to break even.
b. Calculate the sales revenue that Feet-First must earn to break even by using the contribution margin.
c. Confirm your answer in requirement b, by muliplying the number of break-even units in require- ment a by the unit sales price.
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Related Book For
Managerial Accounting For Undergraduates
ISBN: 9780357499948
2nd Edition
Authors: James Wallace, Scott Hobson, Theodore Christensen
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