Question
The condensed income statement for the Nancy and Paul partnership for 2022 is as follows. Nancy and Paul Company Income Statement For the Year Ended
The condensed income statement for the Nancy and Paul partnership for 2022 is as follows.
Nancy and Paul Company Income Statement For the Year Ended December 31, 2020 | |||||
---|---|---|---|---|---|
Sales (244,800 units) | $1,224,000 | ||||
Cost of goods sold | 816,000 | ||||
Gross profit | 408,000 | ||||
Operating expenses | |||||
Selling | $306,000 | ||||
Administrative | 155,550 | ||||
461,550 | |||||
Net loss | $(53,550 | ) |
A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 40% of the selling expenses are variable. Administrative expenses are $94,350 fixed.
Compute the break-even point in total sales dollars for 2022. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.)
Break-even point in dollars Break even in units |
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