Question
TB MC Qu. 9-26 (Algo) The annual breakeven point in dollars: Sleepy Time Sleepy Time is a retailer of luxury bed frames located in Los
TB MC Qu. 9-26 (Algo) The annual breakeven point in dollars: Sleepy Time
Sleepy Time is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Sleepy Time 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 | $ 3,100.00 |
|---|---|
| Per-unit variable costs: | |
| Invoice cost | 2,350.00 |
| Sales commissions | 250.00 |
| Total per-unit variable costs | $ 2,600.00 |
| Total annual fixed costs: | |
| Advertising | $ 230,500 |
| Rent | 176,600 |
| Salaries | 385,500 |
| Total annual fixed costs | $ 792,600 |
The annual breakeven point in dollars is: (Do not round intermediate calculations.)
Multiple Choice
$4,914,120.
$4,614,120.
$4,214,120.
$4,714,120.
$4,414,120.
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Cpa Financial Services A Guide To Fitting The Pieces Together
Authors: Billy Hemby
1st Edition
1958331007, 978-1958331002
