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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 | $60,000 | $96,000 |
| Expenses | (65,000) | (77,000) |
| Profit (loss) | $(5,000) | $19,000 |
1. Determine the unit sales volume required to earn a pretax profit of $8,000.
2. Determine the break-even point in units.
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