45. Belton Company had the following income statement last year:

Belton’s cost of goods sold is 80% variable. Operating expenses are 40% variable. Belton will have to lower its selling price by 20% next year to keep up with the market, but variable costs per unit are not expected to change.
Calculate the following:

a. The current revenues required to break even

b. The revenues required to break even next year

c. Projected profit next year if sales remain at the same volume as this year

d. The revenues required to keep profit from declining next year

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Revenues $830,000 Cost of goods sold 275,000 Gross margin (GM) Operating expenses Before-tax income Tax (30%) Net income $555,000 383,750 $171,250 51,375 $119,875