Thank you.

APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Harrison Products Further analysis of Harrison Products's fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas for the revised fixed costs. Enter the ratio as a percentage. Contribution Margin per Unit = Contribution Margin Ratio % Now complete the formulas for (1) the break-even point in sales dollars and (2) the units sold at the break-even point. To calculate this, divide the break-even point in sales dollars by the unit selling price. Break-Even Point in Sales Dollars Units Sold at Break-Even Point units Assume that the number of units that Harrison sold exceeded the break-even point by one (1). How much would operating income be? What would operating income be if the units sold exceeded the break-even point by five (5) units? The Cost-Volume-Profit Graph The CVP graph shows the relationships among cost, volume, and profits. The X-(horizontal) axis is the total units, and the Y-(vertical) axis Is the dollars (sales or costs). The intersection of these two axes the origin is where hoth units and dollars are zern There are two lines to he nintted on the graph. the sales line and the total costs Next Check My Work Previous Email Instructor Save and Exit Submit Assignment for Grading