Question
High-Low Cost Estimation and Profit Planning Comparative income statements forBismark Products Inc. follow: BISMARK PRODUCTS INC. Comparative Income Statements For Years Ending December 31 Year
High-Low Cost Estimation and Profit Planning Comparative income statements forBismark Products Inc. follow:
| BISMARK PRODUCTS INC. Comparative Income Statements For Years Ending December 31 | ||
|---|---|---|
| Year 1 | Year 2 | |
| Unit sales | 6,250 | 9,375 |
| Sales revenue | $ 100,000 | $ 150,000 |
| Expenses | (85,000) | (105,000) |
| Profit (loss) | $ 15,000 | $ 45,000 |
Note: Round UP answers to the nearest unit. (a) Determine the break-even point in units. Answer
units (b) Determine the unit sales volume required to earn a pretax profit of $25,000. Answer
units
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Textbook Of Financial Accounting And Analysis
Authors: Gaurav Agrawal
1st Edition
9350840901, 9789350840900
