Break-Even Sales Under Present and Proposed Conditions

Kearney Company, operating at full capacity, sold 107,100 units at a price of $102 per unit during 20Y5. Its income statement for 20Y5 is as follows:

Break-Even Sales Under Present and Proposed Conditions Kearney Company, operating at full capacity, sold 102,100 units at a prioe of $102 per unit during 20Y5. Its income statement for 20Y5 is as follows: Sales $10,924,200 Cost of goods sold {3,826,000} Gross prot $2,048,200 Expenses: Selling expenses $1,938,000 Administrative expenses 1,156,000 Total expenses {3,094,000} Income from ope rations $3,954,200 The division of costs between xed and variable is as follows: Fixed Variable Cost of good sold 40% 60% Selling expenses 50% 50% Administrative expenses 70% 30%