Question
A) The following information pertains to Sisk Co.: Sales (25,000 units) $500,000 Direct materials and direct labor 150,000 Factory overhead: Variable 20,000 Fixed 35,000 Selling
A) The following information pertains to Sisk Co.:
| Sales (25,000 units) | $500,000 |
| Direct materials and direct labor | 150,000 |
| Factory overhead: | |
| Variable | 20,000 |
| Fixed | 35,000 |
| Selling and general expenses: | |
| Variable | 5,000 |
| Fixed | 30,000 |
Sisks breakeven point in number of units is __________?
B) The data below pertain to the forecasts of XYZ Company for the upcoming year.
| Total Cost | Unit Cost | |
| Sales (40,000 units) | $1,000,000 | $25 |
| Raw materials | 160,000 | 4 |
| Direct labor | 280,000 | 7 |
| Manufacturing overhead: | ||
| Variable | 80,000 | 2 |
| Fixed | 360,000 | |
| Selling and general expenses: | ||
| Variable | 120,000 | 3 |
| Fixed | 225,000 | |
Assuming that XYZ Company sells 80,000 units, what is the maximum that can be paid for an advertising campaign while still breaking even?
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