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Given the cost structure as shown on the following income statement for the period ending March 31 2016, what volume in dollars must be generated
Given the cost structure as shown on the following income statement for the period ending March 31 2016, what volume in dollars must be generated for the company to break even? (Use the cost-volume-profit analysis to answer this question.)
A) $11,154,734
B) $9,089,245
C) $15,438,614
D) $14,289,564
Balance Sheets 3131 2015 331/2016 Accoun Cash 390.000 160.000 Accounts Receivable 3,400,000 2.000.000 300,000 205.200 Retainage Receivable Material Inventory 170,000 70,000 Under-billings 500,000 250,000 40,000 40.000 Other Current Assets 2,800,000 2725200 Total Current Asset Equipment Gross 360.000 360.000 Less: Ad.cDep 139.200 211.200 220 S00 148 800 Equipment Net Building (Gross 60,000 60,000 Building (Net 51.000 48000 Land 47.000 47.000 31.800 243.800 Total Non-Current Assets Total Assets 5.113.800 2.969.000 Equities Liabilities 560,000 Account payable 475,000 1.270,000 400.000 Subcontracts pavable 170,000 75,000 Retainage Payable Over-billings 600,000 700,000 300,000 150,000 Note Payable (current) 5.000 Income Tax payable Current portion LTAD 200,000 100,000 42.000 14.000 Other Current Liability 3,200,000 1.900.000 Total Current Liability Long Term Debt 145,000 4,013.900 2,045.000 Total Liability Net Worth Capital Stock S40,000 700,000 260,000 224.000 Retained Earning 1.100,000 924.000 Total Net Worth Total Equities 5.113.800 2.969.000 Income Statements 220 115 2016 Accoun Earnings 14.000.000 10.000.000 Cost of Construction Labor 2.240.000 1.600.000 Material 5.600.000 4000,000 480,000 3,200,000 Subcontract 280,000 200,000 Other Direct Cost (JOH) 12.600.000 9.000.000 Total Direct Cost Gross profit 1,400,000 1,000,000 Operating Expense Variable Operating Expense Auto and Truck 210,000 150,000 000 60,000 Communications Interest Work in progress 140,000 100,000 204200 237000 Insurance Work in progres 2.000 20.000 Other Variable Expense 666200 567000 Total Variable Operating Expense Fixed Operating Expense 5.000 6.000 Contributions 72.000 72,000 Depreciation (Equipment 3000 3,000 Depreciation (Building 27,000 29,000 Insurance (Equipment) 2 S.000 20,000 Interest (Equipmen Rent 44 000 444 000 Salaries 334,300 300,000 Other Fixed Expense 10,000 10,000 523800 4S3,000 Total Fixed Operating Exp 1.190.000 1,050,000 Total Operating Expense Net Profit before tax 210,000 Tax (28%) 5.300 -14.000 Net profit after tax 151.200 36.000 Dividends 21.200 130,000 36,000> Retained earningsStep by Step Solution
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