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Jefferson Company has a plant capacity of 100,000 units, at which level variable costs are $720,000. Fixed costs are expected to be $432,000. Each unit
Jefferson Company has a plant capacity of 100,000 units, at which level variable costs are $720,000. Fixed costs are expected to be $432,000. Each unit of product sells for $12.
A. Determine the company's break-even point in sales.
b. at what level of sales dollars would the company earn net income of $144,000?
c. If the selling price were raised to $14.40 per unit, at what level of sales dollars would the company earn $144,000?
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