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Original Break-even calculations Sales (total number of shoes sold in a month x selling price each shoe) 100,000 Variable costs (40%) (40,000) Contribution margin (Sales
Original Break-even calculations
Sales (total number of shoes sold in a month x selling price each shoe) | 100,000 |
Variable costs (40%) | (40,000) |
Contribution margin (Sales - Variable costs) | 60,000 |
Fixed costs - given | (35,000) |
Operating income (Contribution margin - fixed cost) | 25,000 |
Break-even point (fixed costs / variable costs per unit) = | 583.33 units |
Respond to the following:
- How did you calculate the original operating income and break-even point before changes?
- Detail how you calculated contribution margin, operating income, and break-even point.
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