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B&B produces and sells one single product: BT5. The production capacity of B&B is 80,000 units. Annual sales volume expected in 2021 is 68,000 units.

B&B produces and sells one single product: BT5. The production capacity of B&B is 80,000 units. Annual sales volume expected in 2021 is 68,000 units.

The following information is estimated for 2021: selling price per unit: $48, variable cost per unit: $36, and annual fixed costs: $420,000.

1.What is the break-even-point (BEP) in units

2.What is the BEP in sales dollars?

3.Prepare a contribution margin income statement for the expected sales in 2021

4.What would be the firms profit if 36,000 units are sold in 2021?

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