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Managerial Accounting Break-Even Analysis Saul Inc. Income Statement For the Year Ended December 31, 2022 Ef 125,000 Sales Revenue 52,000 Cost of goods sold 73,000
Managerial Accounting Break-Even Analysis Saul Inc. Income Statement For the Year Ended December 31, 2022 Ef 125,000 Sales Revenue 52,000 Cost of goods sold 73,000 Gross Profit Operating Expenses: 30,000 Selling Administrative 25,000 Total Operating Expenses 55,000 Net Income 18,000 They sold 12,500 units during 2022. Cost of goods sold is 100% variable. Selling expenses are 60% variable and administrative expenses are 20% variable. Required: 1. Calculate the break-even point in units. 2. Calculate the break-even point in sales. 3. Assume they want to earn a profit of $40,000 in 2023. How many units would they have to sell to achieve their goal? 4. Assume that in 2023 they plan to increase their selling price by 10%. How many units would they have to sell to break-even
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