Question
Compute the break-even point in sales dollars. a. Assume that fixed costs of Celtics Company are $180,000 per year, variable cost is $12 per unit,
Compute the break-even point in sales dollars.
a. Assume that fixed costs of Celtics Company are $180,000 per year, variable cost is $12 per unit, and selling price is $30 per unit. Determine the break-even point in sales dollars.
b. Hawks Corporation breaks even when its sales amount to $89,600,000. In 2014, its sales were $14,400,000, and its variable costs amounted to $5,760,000. Determine the amount of its fixed costs.
c. The sales of Niners Corporation last year amounted to $20,000,000, its variable costs were $6,000,000, and its fixed costs were $4,000,000. At what level of sales dollars would the Niners Corporation break even?
d. What would have been the net income of the Niners Corporation in part ( c ), if sales volume had been 10% higher but selling prices had remained unchanged?
e. What would have been the net income of the Niners Corporation in part ( c ), if variable costs had been 10% lower?
f. What would have been the net income of the Niners Corporation in part ( c ), if fixed costs had been 10% lower?
g. Determine the break-even point in sales dollars for the Niners Corporation on the basis of the data given in ( e ) and then in ( f ).
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