Question
High-Low Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow: DAKOTA PRODUCTS INC. Comparative Income Statements For Years
High-Low Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow:
| DAKOTA PRODUCTS INC. Comparative Income Statements For Years Ending December 31, 2007 and 2008 | ||
|---|---|---|
| 2007 | 2008 | |
| Unit sales | 5,000 | 8,000 |
| Sales revenue | $65,000 | $104,000 |
| Expenses | (71,000) | (86,000) |
| Profit (loss) | $(6,000) | $18,000 |
(a) Determine the break-even point in units. Answer units (b) Determine the unit sales volume required to earn a profit of $6,000. Answer
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
4th edition
1405888202, 978-0273711490, 273711490, 978-1405888202
