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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Managerial Accounting For Undergraduates

ISBN: 9780357499948

2nd Edition

Authors: James Wallace, Scott Hobson, Theodore Christensen

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