Problem 4.

Brady Co. has the following unit cost information for the year 2017.

Sales price per unit $60

Variable manufacturing costs $15

Fixed manufacturing costs $20

Variable selling and admin costs $9

Fixed selling and admin costs $10

Cost per unit $54

Number of units produced and sold 100,000

1. What income would Brady Co. earn if they produced and sold 110,000 units?

2. How many units must be sold for Brady Co. to breakeven?

3. Assume that Brady does breakeven in 2017. What would be the sales revenue reported on Bradys 2017 income statement?