Question
The sales of Niners Corporation last year amounted to $20,000,000, its variable costs were $6,000,000, and its fixed costs were $4,000,000. a. At what level
The sales of Niners Corporation last year amounted to $20,000,000, its variable costs were $6,000,000, and its fixed costs were $4,000,000.
a. At what level of sales dollars would the Niners Corporation break even?
b. What would have been the net income of the Niners Corporation in part (c), if sales volume had been 10% higher but selling prices had remained unchanged?
c. What would have been the net income of the Niners Corporation in part (c), if variable costs had been 10% lower?
d. What would have been the net income of the Niners Corporation in part (c), if fixed costs had been 10% lower?
e. Determine the break-even point in sales dollars for the Niners Corporation on the basis of the data given in (e) and then in (f).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started