Question
During FY 2016, Alpha Company sold 100 units for total sales of $10,000. Manufacturing costs consisted of direct labor $1,500, direct materials $1,400, variable factory
During FY 2016, Alpha Company sold 100 units for total sales of $10,000. Manufacturing costs consisted of direct labor $1,500, direct materials $1,400, variable factory overhead $1,000, and fixed factory overhead $500. Alpha Company does not maintain any inventories. Total cost of goods sold was $4,400. Selling expenses were $600 variable and $1,000 fixed. Administrative expenses were $500 variable and $1,000 fixed. Net Income was $2,500. Use this information to determine the following using CVP Analysis: (Round all final answers to nearest dollar or whole unit number.)
1. Breakeven Point in total sales dollars
2. Breakeven Point in total units
3. Breakeven Point in total sales dollars if the fixed factory overhead increased by $1,500
4. Breakeven Point in total units if the fixed factory overhead increased by $1,500
5. Net Income if sales units increased by 35%
So I already know the answers to this problem i just don't know how to get there, I have a similar problem I am working through and I can't figure out why I can't match up the two and find the answer so If anyone can help with maybe some side notes on how to get to the answers that would be great. I am trying to figure out the per unit variable costs and the contribution per unit so i can relate it back to my other problem
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