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Break-Even Sales Under Present and Proposed Conditions Kearney Company, operating at full capacity, sold 107,100 units at a price of $117 per unit during 20YS.
Break-Even Sales Under Present and Proposed Conditions Kearney Company, operating at full capacity, sold 107,100 units at a price of $117 per unit during 20YS. Its income statement for 20Y5 is as follows: Sales Cost of goods sold Gross profit Expenses: $12,530,700 (4,446,000) $8,084,700 Selling expenses Administrative expenses Total expenses $2,223,000 1,326,000 (3,549,000) Income from operations $4,535,700 The division of costs between fixed and variable is as follows: Cost of good sold Selling expenses Administrative expenses 70% Fixed 40% 50% Variable 60% 50% 30%
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