Dear students:

Please calculate the following:

*Taking into account the following data:

Sale price		220.00
Variable costs	75.00
Fixed cost		5,800.00
Units		1, 20, 30, 40 and 50

Desired operating profit	18,720.00
Operating profit % sales	25%

Calculate each sales level and answer:

1) At what level of sales is the lowest level of operating profit obtained?

2) At what level of sales is the highest level of operating profit obtained?

3) What is the balance point?

4) Units to sell to obtain the desired operating profit.

5) Units to sell to obtain operating profit as a percentage of sales.

* Time in class: 35 minutes.