1. High-Low Cost Estimation and Profit Planning Comparative 2012 and 2013 income statements for Dakota Products Inc....
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1. High-Low Cost Estimation and Profit Planning Comparative 2012 and 2013 income statements for Dakota Products Inc. follow:
| Unit sales | 6,000 | 9,000 |
| Sales revenue | $ 78,000 | $ 117,000 |
| Expenses | (70,000) | (85,000) |
| Profit (loss) | $ 8,000 | $ 32,000 |
(a) Determine the break-even point in units. Answer
units
(b) Determine the unit sales volume required to earn a profit of $12,000.
Answerunits
2.
Multiple Product Break-Even Analysis Presented is information for Stafford Company's three products.
| Unit selling price | $7 | $9 | $7 |
| Unit variable costs | (4) | (5) | (1) |
| Unit contribution margin | $3 | $4 | $6 |
With monthly fixed costs of $306,000, the company sells two units of A for each unit of B and three units of B for each unit of C. Determine the unit sales of product A at the monthly break-even point. Answer
units
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