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Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the companys costs is as follows: Variable manufacturing cost per
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the companys costs is as follows:
Variable manufacturing cost per unit | $9 |
Variable selling and administrative cost per unit | $4 |
Fixed manufacturing overhead per month | $250,000 |
Fixed selling and administrative cost per month | $350,000 |
a. Determine the companys monthly break-even point in units. b. Determine the sales volume (in dollars) required for a monthly operating income of $100,000. c. Estimate the amount by which monthly operating income will increase if the company anticipates a $200,000 increase in monthly sales volume.
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