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Spark Skateboards manufactures and sells skateboards. Spark's estimated fixed costs for 2023 are $330,000, and the estimated variable costs per skateboard are $32. Spark
Spark Skateboards manufactures and sells skateboards. Spark's estimated fixed costs for 2023 are $330,000, and the estimated variable costs per skateboard are $32. Spark sells each skateboard for $80. Spark's fiscal year is the calendar year. Required: 1. Prepare a detailed calculation of the break-even point in units. 2. Prepare a detailed calculation of the break-even point in dollars. 3. Construct a cost-volume-profit chart. Your chart must have all required elements as outlined in the appropriate narrated PowerPoint presentation. Use increments of 100,000 for the vertical axis and 1,000 for the horizontal axis with a maximum of 1,000,000 for the vertical axis and 10,000 for the horizontal axis. 4. Spark is performing some long-term planning and is considering manufacturing and selling longboards in addition to their regular skateboards. Below are some relevant estimates that Spark has prepared for 2025: Skateboard Selling price Variable Cost Units Sold Longboard $90 $110 40 45 12,000 4,000 Total fixed costs for 2025 are estimated at $580,500. a. Prepare a detailed calculation of the number of skateboards Spark must sell in 2025 to break-even. b. Prepare a detailed calculation of the number of longboards Spark must sell in 2025 to break-even.
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