Question

Based on the data below:

1. What is the dollar amount of the numerator to calculate the break even point?
2. What Is the denominator if calculating break even in terms of units?
3. What Is the denominator if calculating break even in terms of dollars?
4. What are the units to break even?
5. What is the revenue to break even?
6. How many units must be sold to earn operating income of $100,000?

8. What revenue is needed to earn net income of $100,000?

Data Set

Data Table for Question

Units sold

Sales

Variable Manufacturing Costs

Fixed Manufacturing Costs

Gross Margin

Variable Selling Costs

Fixed Selling Costs

Operating Income EBIT

Income Taxes at 20%

Net Income

4,000

$1,000,000

560,000

165,000

275,000

40,000

45,000

190,000

38,000

$152.000

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