Question
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 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 Per-unit variable costs: Invoice cost Sales commissions Total per-unit variable costs Total annual fixed costs: Advertising Rent Salaries $3,050.00 2,268.80 291.20 $2,560.00 $ 236,100 178,100 386,100 Total annual fixed costs $ 800,300 The annual breakeven point in dollars is: (Do not round intermediate calculations.) $4,981,460. $4,681,460. $4,281,460. $4,781,460. $4,481,460.
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