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Budgeted data for the Bidwell Company are as follows: Sales (100,000 units) $1,000,000 Costs Fixed Variable Direct materials $-0- $300,000 Direct labor -0- 200,000 Factory
Budgeted data for the Bidwell Company are as follows: Sales (100,000 units) $1,000,000 Costs Fixed Variable Direct materials $-0- $300,000 Direct labor -0- 200,000 Factory costs 100,000 150,000 Marketing & admin. costs 110,000 50,000 $210,000 $700,000 Total 910,000 Budgeted operating income $90,000 Compute: (a) Break-even point in units (b) Number of units that must be sold to achieve a target income of $90,000. (c) Break-even point in units, assuming fixed costs increase by $31,500
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