Question
Blossom Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current
Blossom Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: Variable costs (per pair of shoes) Direct materials $37 Direct manufacturing labour 17 Variable overhead (manufacturing, marketing, distribution, customer service, and administration) 19 Total variable costs $73 Fixed costs Manufacturing $2,500,000 Marketing, distribution, and customer service 450,000 Administrative. 700,000 Total fixed costs $3,650,000 Selling price per pair of shoes $173 Expected revenues, 2022 (50,000 units) $8,650,000 Income tax rate 40% Calculate the break-even point in units for 2022. Break-even point units
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