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4. The Sweet Corporation reported the following information for the year ended December 31, 2020. Net Sales Cost of Production Marketing and distribution Other expenses
4. The Sweet Corporation reported the following information for the year ended December 31, 2020. Net Sales Cost of Production Marketing and distribution Other expenses Total Expenses Operating Income $105,000 $16,350 $9,000 $151,350 75% variable, 25% fixed 40% variable, 60% fixed 100% fixed $130,350 $21,000 The company sold 10,000 pounds of sugar during 2020. For 2021, the company expects other expenses to increase by 25% and unit sales to increase by 20%. The company also expects to sell all of the sugar that they produce. There will be no ending inventories of sugar. There are no other changes expected for 2021. All cost relationships are expected to remain the same. Round ALL cost per unit computations to two decimal places. Required: a. Compute the breakeven point in units for the year 2020. _Round UP to the nearest whole unit) b. Compute the operating income for the year 2021. $ _Round to the nearest whole dollar)
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