Question
Cutlass company's projected profit for the coming year is as follows Total Per Unit Sales 200,000 20 Total variable cost 120,000 12 Contribution margin 80,000
Cutlass company's projected profit for the coming year is as follows
Total Per Unit
Sales 200,000 20
Total variable cost 120,000 12
Contribution margin 80,000 8
Total fixed cost 64,000
Operating income 16,000
Required
a. Compute the break even point in units
b. Compute the break even point in sales dollars
c. How many units must be sold to earn a profit of 30,000?
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Auditing And Assurance Services
Authors: William Messier, Steven Glover, Douglas Prawitt
8th Edition
0078025435, 9780078025433
