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Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium
Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below.
Sales price per unit | $ | 3,300.00 | |
Per-unit variable costs: | |||
Invoice cost | 2,550.00 | ||
Sales commissions | 290.00 | ||
Total per-unit variable costs | $ | 2,840.00 | |
Total annual fixed costs: | |||
Advertising | $ | 230,900 | |
Rent | 177,000 | ||
Salaries | 385,900 | ||
Total annual fixed costs | $ | 793,800 | |
The annual breakeven point in dollars is: (Do not round intermediate calculations.)
Multiple Choice
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$5,694,653.
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$5,494,653.
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$5,394,653.
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$5,194,653.
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$4,994,653.
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