Break-Even Sales Under Present and Proposed Conditions Howard Industries Inc., operating at full capacity, sold 64,000 units at a price of $45 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses: Selling expenses Cost of goods sold Selling expenses $400,000 387,500 Administrative expenses Total expenses 787,500 Income from operations $ 692,500 The division of costs between variable and fixed is as follows: Check My Work Variable 75% 60% $2,880,000 1,400,000 $1,480,000 80% Fixed Administrative expenses Management is considering a plant expansion program for the following year that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by $212,500 but will not affect the relationship between sales and variable costs. Required: 25% 40% 20% Previous Next >

Break-Even Soles Under Present and Proposed Conditians Howard Industries Inc, operating at full capacity, soid 64,000 units at a price of $45 per unit during the current year. Its income statement is as follows: The division of costs between variable and fixed is as follows: Management is considering a plant expension program for the following year that will permit an increase of \$900,000 in yearly sales. The expansion will increase: fixed costs by $212.500 but will not affect the relationship between sales and yariable costs. Break-Even Soles Under Present and Proposed Conditians Howard Industries Inc, operating at full capacity, soid 64,000 units at a price of $45 per unit during the current year. Its income statement is as follows: The division of costs between variable and fixed is as follows: Management is considering a plant expension program for the following year that will permit an increase of \$900,000 in yearly sales. The expansion will increase: fixed costs by $212.500 but will not affect the relationship between sales and yariable costs