Question
June July Sales 40,000 50,000 Cost of Goods Sold 25,000 30,000 Gross Profit 15,000 20,000 Less: Selling and distribution costs 2,000 2,500 Administration costs 7,000
|
| June | July |
| Sales | 40,000 | 50,000 |
| Cost of Goods Sold | 25,000 | 30,000 |
| Gross Profit | 15,000 | 20,000 |
|
|
|
|
| Less: |
|
|
| Selling and distribution costs | 2,000 | 2,500 |
| Administration costs | 7,000 | 7,500 |
| Net Profit | 6,000 | 10,000 |
Company uses absorption costing. No beginning and ending inventory for both June and July. Fixed portion of all expenses remain constant for both months. What is the companys breakeven sales revenue. State assumptions
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
